FTC Passes Rule Banning Noncompetes In The US Overriding All States Existing Laws.

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You cannot enforce an existing non-compete against such a worker or represent to such a worker that they are covered by an enforceable non-compete.

Employers must notify employees that their non-compete agreements are no longer enforceable:

When

After September 4, 2024, employers must notify employees that their non-competes are no longer enforceable, except for certain senior executives.
What

Employers must provide explicit notice to both current and former employees. The FTC has included model language in the final rule to help employers comply.

The Federal Trade Commission’s (FTC) final rule prohibits employers from binding most American workers to post-employment non-competition agreements. The FTC believes that non-compete agreements are exploitative and can: Suppress wages, Hamper innovation, and Block entrepreneurs from starting new businesses.

Existing non-competes with senior executives remain valid. A senior executive would be an employed individual making more than 130k a year.

FTC Ruling & Guidelines

FTC Passes Rule Banning Noncompetes In The US Overriding All States Existing Laws.

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