The Intersection of Corporate Governance and Antitrust, Part III: New FTC Proposed Rule Banning Non-Competes

• January 13, 2023

• Michael W. Peregrine , McDermott Will & Emery LLP
• Stephen Y. Wu , McDermott Will & Emery LLP

The intersection of corporate governance and the antitrust laws was again emphasized by the Federal Trade Commission’s (FTC’s) January 5, 2023 release of a proposed new administrative rule (Proposed Rule) that would, if finalized, prevent employers from entering into most forms of non-compete clauses with workers, and require employers to rescind existing non-compete clauses. This presents a potential enterprise risk to many health care companies for which non-compete and similar agreements are critical elements of their business plans.