The future ban on non-compete clauses in employment contracts – the revival of NDAs?

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The future ban on non-compete clauses in employment contracts – the revival of NDAs?

Soon there may be a need to review how companies effectively retain and protect their know-how and customer relationships in the context of employee turnover. On January 5, 2023, the US competition authority (Federal Trade Commission, “FTC”) issued a Notice of Proposed Rulemaking for a new federal regulation regarding non-compete clauses in employment contracts. The FTC proposes a categorical ban for employers to apply contractual provisions that block a leaving employee from working for a competing employer, or starting a competing business. While competition rules across Europe do not generally cover non-compete clauses in employment contracts, the development in the US will have an impact on European businesses and workers.

Read the article by Andreas Holmqvist and Foad Hoseinian and senior associate Magdalena Jerner here.

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Fredrika Ahnborg Katouzi

Fredrika Ahnborg Katouzi

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