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ARTICLE · 30 APRIL 2024

Understanding The FTC's Ban On Non-Competes

BoyarMiller
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In a significant regulatory shift, the Federal Trade Commission (FTC) has announced a new rule that effectively bans non-competition agreements...

United StatesEmployment and HR
Chris Hanslik
Chris Hanslik

In a significant regulatory shift, the Federal Trade Commission (FTC) has announced a new rule that effectively bans non-competition agreements across the United States. Also known as non-competes, these are clauses in a contract that specify that an employee must not enter into competition with an employer after termination. Intended to promote labor mobility and competition, the rule becomes effective in four months and could have profound implications for both employees and businesses of all sizes. However, several trade groups, including the U.S. Chamber of Commerce, plan to sue the FTC over the rule and seek a stay delaying its implementation.

Overview of the New Rule

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