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ARTICLE · 30 APRIL 2024

FTC Approves Non-Compete Ban

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On Tuesday afternoon, April 23, the Federal Trade Commission (FTC) voted 3-2 along party lines to approve its new rule on non-competes.

United StatesEmployment and HR
Christopher Rubey
Christopher Rubey
Samantha Bartley
Samantha Bartley
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On Tuesday afternoon, April 23, the Federal Trade Commission (FTC) voted 3-2 along party lines to approve its new rule on non-competes. The new rule, which will take effect in 120 days, essentially bans non-competes for all workers, finding them "an unfair method of competition – and therefore a violation of Section 5 of the FTC Act."

Notably, a non-complete clause is broadly defined as a "contractual term or workplace policy that prohibits a worker from, penalizes a worker for, or functions to prevent a worker from seeking or accepting work in the United States with a different person where such work would begin after the conclusion of the employment or operating a business in the United States after the conclusion of the employment."

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