In January, the Federal Trade Commission (FTC) issued a notice of proposed rulemaking (NPRM) that would ban the use of non-compete provisions and non-compete agreements between employers and workers. The NPRM invites members of the public to comment during a period that will end on March 20, 2023. Once the comment period ends, the FTC will review the feedback it has received. It may make changes to the proposal based on that feedback and the FTC’s continued consideration of the issue. If substantial changes are made, a new NPRM may be published.

However, the NPRM could be finalized as written, and, as written, the ban would apply to both employees and independent contractors and would require employers to stop using non-compete provisions and agreements. The proposal would also require employers to withdraw existing non-compete provisions and agreements and inform workers subject to any such provisions or agreements that they are no longer in force. 

PIA knows its members use non-compete provisions and agreements to protect their businesses, and we know how important this issue is to agency owners. Independent insurance agencies rely on the use of non-compete provisions and agreements to protect their businesses. For that reason, we are preparing to submit comments to the FTC to request that it withdraw its proposal. We encourage you join us in doing so.

Act now by sending a message to the FTC letting them know how damaging a ban on non-compete provisions and agreements would be to your business and requesting that the FTC withdraw its proposed ban.