Ftc Proposes New Rule To Ban Non Compete Clauses On january 5, 2023, the federal trade commission (“ftc”) proposed a new rule which would effectively ban all non compete agreements between employers and “workers” (defined under the rule to include employees, independent contractors, interns, and others). As previously reported, on january 5, 2023 the federal trade commission (“ftc”) proposed a new rule which would effectively ban all non compete agreements between employers.
Ftc S New Rule Banning Non Compete Agreements Michael V Favia On april 23, 2024, the ftc voted to finalize a new rule to prohibit employers from enforcing noncompetes against workers. the commission determined that noncompetes are an unfair method of competition and therefore violate section 5 of the federal trade commission act (“ftc act”). On january 5, 2023, the ftc released a notice of proposed rulemaking (“nprm”) to prohibit employers from imposing non compete clauses on workers, asserting that non compete clauses reduce workers’ wages, stifle new businesses and ideas, exploit workers, and hinder economic liberty. On april 23, 2024, by a vote of 3 2 along party lines, the federal trade commission (ftc) voted to approve a final rule effectively banning employers from using non compete agreements, with a few limited exceptions. the measure reflects an unprecedented effort by the ftc to expand its rule making authority. The federal trade commission (ftc) issued a new rule on april 23, 2024, banning new non compete agreements in all employment contexts. the highly anticipated rule, which was first proposed in draft form in january 2023, is expected to have significant impacts on employers in a wide swath of industries who have traditionally relied on non competes to protect company secrets and intellectual.
Ftc Approves Final Rule Banning Non Compete Agreements Sprouse On april 23, 2024, by a vote of 3 2 along party lines, the federal trade commission (ftc) voted to approve a final rule effectively banning employers from using non compete agreements, with a few limited exceptions. the measure reflects an unprecedented effort by the ftc to expand its rule making authority. The federal trade commission (ftc) issued a new rule on april 23, 2024, banning new non compete agreements in all employment contexts. the highly anticipated rule, which was first proposed in draft form in january 2023, is expected to have significant impacts on employers in a wide swath of industries who have traditionally relied on non competes to protect company secrets and intellectual. Four states, california, minnesota, north dakota, and oklahoma ban non compete agreements entirely. that leaves 34 states with differing restrictions on such agreements. As of march 26, 2025, the federal trade commission’s (ftc) proposed ban on non compete agreements remains unenforceable due to legal challenges. initially slated to take effect on september 4, 2024, the rule faced opposition from various business groups, leading to multiple lawsuits. The federal trade commission (“ftc”) issued its final rule tuesday banning almost all noncompete agreements between businesses and workers nationwide. The ftc’s non compete rule: bold ambition meets legal fire the federal trade commission’s april 2024 rule banning most employment related non compete clauses represented one of the most sweeping exercises of its rulemaking authority in decades.
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