Noncompetes to be banned in the U.S. after FTC ruling

2024-04-24T11:36:00-04:00

The Federal Trade Commission has announced a rule banning noncompetes in the United States. According to the FTC, the ban seeks to “promote competition” by “protecting the fundamental freedom of workers to change jobs, increasing innovation, and fostering new business formation.” The rule is expected to go into effect in six months.

The rule will not apply to existing noncompetes for senior executives (workers earning more than $151,164 annually and who are in policy-making positions), although employers cannot enter into or enforce new noncompetes for senior executives. In all cases, employers must provide notice to workers bound to an existing noncompete that the agreement will not be enforced against them in the future.

Related on Archinect: A Guide to Salary Transparency Laws Across the United States. Image: Pixabay

Noncompetes can be used in the U.S. to impose contractual conditions on employees that prevent workers from taking a new job or starting their own business, the FTC n...

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Noncompetes to be banned in the U.S. after FTC ruling