Terrell McSweey’s commentary was included in a Law.com article covering the Federal Trade Commission’s (FTC) finalized rule prohibiting employers from imposing noncompete agreements on their workers. Terrell called the final rule "a very significant action."
"They're using their authority under Section 5 of the FTC Act to police unfair methods of competition to promulgate this rule. And it's an interesting, potential expansion of the FTC's authority under this statute to use what we call the UMC, the unfair methods of competition, authority in this way," she said.
"It's a historic action by the FTC, but it also has really wide-ranging implications for employers and employees," Terrell added. "It will still essentially ban noncompete clauses and employment agreements for most employees, with some exceptions for senior executives that are pretty narrow. And, it will cover every part of the economy that the FTC has jurisdiction over."