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ARTICLE · 30 APRIL 2024

FTC Votes To Ban Noncompete Agreements

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On April 23, 2024, the Federal Trade Commission (the "FTC") voted 3-2 to issue its final rule ("Final Rule") banning employers from imposing noncompete clauses on their workers...

United StatesEmployment and HR
John Carroll
John Carroll
Leo Caseria
Leo Caseria
Jonathan E Clark
Jonathan E Clark
Thomas Dillickrath
Thomas Dillickrath
Stephen E. Fox
Stephen E. Fox
Bevin M.B. Newman
Bevin M.B. Newman
Ann O'Brien
Ann O'Brien
Jonathan Stoler
Jonathan Stoler
Mikela Sutrina
Mikela Sutrina
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On April 23, 2024, the Federal Trade Commission (the "FTC") voted 3-2 to issue its final rule ("Final Rule") banning employers from imposing noncompete clauses on their workers, approving the final rule in a special Open Commission Meeting.

The FTC issued the Final Rule more than 15 months after publishing a proposed rule. Since that time, the FTC has received tens of thousands of comments, with the FTC claiming that 25,000 of the 26,000 comments received supported a ban on noncompetes.

According to FTC Chair Lina Khan, "Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once noncompetes are banned . . . [t]he FTC's final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market."

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