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ARTICLE · 30 APRIL 2024

FTC Votes To Issue Ban On Non-Compete Agreements

Buchanan Ingersoll & Rooney
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Today the Federal Trade Commission (FTC) held an open meeting during which they voted 3-2 to issue a proposed final rule (Final Rule) to ban almost all post-employment non-compete agreements.

United StatesEmployment and HR
Carrie G. Amezcua
Carrie G. Amezcua
Gretchen Jankowski
Gretchen Jankowski
Wendelynne J Newton
Wendelynne J Newton
Jason E. Murtagh
Jason E. Murtagh
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Today the Federal Trade Commission (FTC) held an open meeting during which they voted 3-2 to issue a proposed final rule (Final Rule) to ban almost all post-employment non-compete agreements.

The Final Rule is substantially the same as the initially proposed rule. Key elements of the Final Rule are:

  1. Ban on all new post-employment non-compete agreements between employer and employee, regardless of industry or type of worker (e.g., senior executive versus lower level), after the effective date.
  2. Allows existing post-employment non-compete agreements to remain in effect for senior executives only. Senior executive is generally defined as an employee "earning more than $151,164 annually who are in a policy-making position."

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