FTC staff lay out compliance steps for noncompete ban
By 
Adrianne Appel2024-05-14T19:33:00
Staff at the Federal Trade Commission (FTC) offered several steps businesses can take to comply with the agency’s upcoming ban on employee noncompete clauses.
The rule, approved by the FTC in a 3-2 vote in April, is expected to take effect Sept. 4. It will prohibit most employers from enforcing noncompete clauses and requiring workers to sign them.
The rule will free an estimated 30 million employees from noncompete agreements, which are legal contracts that prohibit workers from working for another employer in the same field for a certain length of time. The FTC described noncompete contracts as anti-competitive and in violation of Section 5 of the Federal Trade Commission Act.
Related articles
-
News BriefFederal judge overturns FTC’s ban on noncompete clauses
A federal judge struck down the ban on noncompete clauses by the Federal Trade Commission that was set to take effect in September.
-
PremiumPreparation key for ‘tectonic change’ from FTC noncompete ban
Companies would be wise to prepare to comply with the Federal Trade Commission’s rule to ban noncompete clauses, despite legal challenges that might delay or prevent it taking effect altogether.
-
News BriefFTC rule bans noncompetes; Chamber of Commerce sues to halt
Tens of millions of noncompete clauses included in employee contracts nationwide will be null and void by about Labor Day under a final rule issued by the Federal Trade Commission.
More from Regulatory Policy
-
ArticleU.K. hopes to create ‘third way’ in AI regulation between EU and U.S.
The U.K.’s data regulator has unveiled a new enforcement approach to AI development and usage that experts say seeks to carve a middle way between the strict rules applied by the European Union (EU) and the pro-industry, light-touch regime favored by the U.S.
-
ArticleU.K. updates pension and asset manager rules, but internal auditors flag governance gaps
Will “taking an axe to” red tape and onerous reporting commitments free up trillions invested in U.K. pensions and increase the value of assets managed by regulated financial services firms?
-
News BriefU.S. Labor Department advances sweeping deregulation push targeting worker protections
The U.S. Department of Labor (DOL) appears to be in the process of deregulating work rules. Some of the changes proposed would result in a reduction of pay for certain health workers and allow minors to work hazardous jobs.