FTC staff lay out compliance steps for noncompete ban

FTC seal

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.

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