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Luyi Song

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Articles

FTC Proposed Ban on Non-Competes Includes M&A Exception Comparable to California Law

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By Barry Brooks, David Hernand, Wenlong Zhuge, Julian Alsarhn, Luyi Song
| Lexology Verified
On January 5, 2023, the Federal Trade Commission (“FTC”) announced a proposed regulation (the “Proposed Rule”) that would ban non-compete agreements imposed against workers by employers. The Proposed Rule includes a narrow sale-of-business exception (the “Proposed Exception”) that would permit a non-compete clause to be enforceable against persons holding at least a 25% ownership interest in the business entity involved in a transaction.
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