The Proposed FTC Rule on Non-compete Agreements and China

The Federal Trade Commission has proposed a rule banning noncompete agreements in the United States. The proposed rule fails to take into account the impact of the proposed rule on international competitiveness, including the ability to protect trade secrets in China. I understand that the aggressive and extensive use of non-compete agreements in the United States for non-technical employees has had an anti-competitive impact. My comments address the potential harm that could be caused to US companies if the FTC were to follow the approach in California of entirely banning noncompete agreements, and insisting that US law is applied to agreements that may involve other countries. I welcome your comments!

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