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ARTICLE · 15 AUGUST 2024

FTC Bans Most Non-Compete Clauses

Barley Snyder
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On Tuesday, April 23, 2024, the Federal Trade Commission (FTC) issued a final rule banning most non-compete clauses. It is estimated that about 30 million employees are subject to a non-compete clause.

United StatesEmployment and HR
Michael J. Crocenzi
Michael J. Crocenzi
Jill Sebest Welch
Jill Sebest Welch
Jennifer Craighead Carey
Jennifer Craighead Carey
Justin A. Tomevi
Justin A. Tomevi

On Tuesday, April 23, 2024, the Federal Trade Commission (FTC) issued afinal rule banning most non-compete clauses. It is estimated that about 30 million employees are subject to a non-compete clause.

What does this final rule do?

Other than for senior executives with an existing non-compete clause, it is illegal for an employer to:

  • enter into or attempt to enter into a non-compete clause with a worker;
  • enforce or attempt to enforce a non-compete clause with a worker; or
  • represent that the worker is subject to a non-compete clause.

What is a non-compete clause?

A written or oral contractual term or workplace policy that prohibits a worker from, penalizes a worker for, or functions to prevent a worker from:

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