https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-rule-banning-noncompetesUnder the FTC’s new rule, existing noncompetes for the vast majority of workers will no longer be enforceable after the rule’s effective date. Existing noncompetes for senior executives - who represent less than 0.75% of workers - can remain in force under the FTC’s final rule, but employers are banned from entering into or attempting to enforce any new noncompetes, even if they involve senior executives. Employers will be required to provide notice to workers other than senior executives who are bound by an existing noncompete that they will not be enforcing any noncompetes against them.
It will be tied up in lawsuits but I like the move. I think it will make for better competition and innovation.
