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ARTICLE · 01 MAY 2024

Ban On Non-Competes In The US

Lewis Silkin
Lewis Silkin
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Lewis Silkin

Lewis Silkin

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The US Federal Trade Commission (FTC) has this week voted in favour of implementing an almost complete ban on employee non-compete obligations, having threatened to do so for a number of years and having been supported.

United StatesEmployment and HR
David Samuels
David Samuels
Toni Lorenzo
Toni Lorenzo
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The US Federal Trade Commission (FTC) has this week voted in favour of implementing an almost complete ban on employee non-compete obligations, having threatened to do so for a number of years and having been supported by President Biden.

Are non-competes not already banned in parts of the US?

While a prohibition on the use of non-competes is nothing new in parts of the US - California has banned them for the past 150 years - any decisions in this regard had previously been taken at a state level. This new ban will be implemented at a federal level, meaning that it will apply across the country and will override any inconsistent state laws.

How will the rule affect businesses?

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