Noncompetes to the North: What US Employers Should Know About Using Noncompete Agreements in Canada

In the United States, the use of noncompete agreements has been prolific and the law regarding the enforcement and use of noncompetes has been fairly steady and noncontroversial—until now. In January 2023, the Federal Trade Commission (FTC) proposed regulations that would, with only very limited exceptions, ban employers from imposing noncompete clauses on their workers and invalidate all existing noncompetes currently in effect. According to the FTC, this will affect 30 million, or one in five, American workers currently covered by a noncompete agreement. In addition, the National Labor Relations Board (NLRB) general counsel put out a memo suggesting noncompete agreements may violate the National Labor Relations Act (NLRA).