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.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
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
-
News BriefTrickle of CFPB lawsuit dismissals poised to become a flood
The Consumer Financial Protection Bureau (CFPB) has quickly become one of the most active agencies advancing the Trump administration’s pullback on prosecuting corporations, as it dropped yet another consumer protection lawsuit against a financial services company Wednesday.
-
PremiumUK’s deregulation drive raises compliance risk, say top lawyers
The United Kingdom’s latest effort to encourage regulators to pare down rules to attract companies and investment as a way to stimulate the economy has received mixed reviews from lawyers.
-
News BriefIs Google headed for a breakup? Second federal judge calls it a monopoly
A federal judge has ruled that Google “willfully engaged in a series of anticompetitive acts” in the advertising technology industry, the latest antitrust setback in what could become a string of losses for tech companies.