FTC proposes banning non-compete clauses
January 13 2023
non compete clauses
The Federal Trade Commission proposed a new rule that seeks to prohibit the imposition of non-compete clauses on workers. According to the FTC, workers subject to these types of clauses are affected in their ability to seek better employment opportunities which also affects free business competition.

This rule would not be absolute, given the Commission indicates that non-competes would still be allowed in cases of shareholder sell-off in a trading company, as well as in the sale of operating assets of a trading company.

It should be noted that, in Colombia, these clauses are allowed under certain circumstances, and that it would be the competition authority, at the request of a party or ex officio, to define whether they may be anticompetitive or not.

This proposal is open for public comment until 10 March 2023.