FTC Noncompete Rule Could Bar Training Repayments, Khan Says

The US Federal Trade Commission’s proposed non-compete ban would apply to deals where workers are forced to pay back their companies for training, the agency’s chair Lina Khan said Friday.

The antitrust and consumer protection agency has proposed a rule to ban non-competes nationwide – clauses that prohibit workers from switching jobs within an industry – and is accepting public comments through next week. The FTC’s proposal covers both non-competes and provisions that have the same effect, Khan said in remarks at a Chicago conference.

Federal Trade Commission Chair Lina Khan, during the Spring Enforcers Summit at the Justice Department in Washington on March 27, 2023.

Photographer: Al Drago/Bloomberg

Training repayments agreements are clawback deals that force workers to pay back their ...