FTC announces nationwide ban on noncompetes in the workplace
More than a year after the Federal Trade Commission (FTC) proposed a game-changing, nationwide ban on noncompete agreements, the agency issued its final rule for implementing the ban on April 24, 2024. The prohibition, which is slated to go into effect later this summer, is estimated to affect 30 million American workers (roughly 18% of the workforce).
In announcing its final rule, the FTC claimed that the elimination of noncompetes—employment clauses and agreements the agency considers to be unfair methods of competition and, as such, unlawful—will result in greater innovation, more business startups, and higher wages nationwide.
What’s included in the final rule
The nationwide ban goes into effect on August 21, 2024, and includes the following key provisions: