FTC Finalizes Ban On Noncompete Agreements

The rule will generally ban employers from entering, maintaining or attempting to enter a noncompete agreement with an employee, or conveying — absent a good-faith basis — that a worker is subject to a noncompete clause.

5 minute read May 01, 2024 at 12:05 AM

Maydeen Merino

FTC Finalizes Ban On Noncompete Agreements

A divided Federal Trade Commission on April 23 finalized a rule prohibiting employers from imposing noncompete agreements on their workers, a controversial regulation that global tax services provider Ryan greeted by filing suit in a Texas federal court saying the FTC's action exceeds its statutory authority.

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