{"id":532,"date":"2024-04-24T16:03:22","date_gmt":"2024-04-24T16:03:22","guid":{"rendered":"https:\/\/pbspay.com\/news\/?p=532"},"modified":"2024-04-25T18:23:58","modified_gmt":"2024-04-25T18:23:58","slug":"most-new-non-compete-agreements-banned-by-ftc","status":"publish","type":"post","link":"https:\/\/pbspay.com\/news\/2024\/04\/24\/most-new-non-compete-agreements-banned-by-ftc\/","title":{"rendered":"Most New Non-Compete Agreements Banned by FTC"},"content":{"rendered":"
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\"\"<\/figure>\n<\/div>\n\n\n

The U.S. Federal Trade Commission (FTC) approved a proposed final rule banning most new non-compete clauses in employment contracts, a rule that will affect millions of workers.<\/p>\n\n\n\n

Under the FTC\u2019s new rule, existing non-competes for most workers will no longer be enforceable after the rule\u2019s effective date. An exception would apply to those covering senior executives.<\/p>\n\n\n\n

The FTC defines the term \u201csenior executive\u201d as workers earning more than $151,164 annually who are in a \u201cpolicy-making position.\u201d<\/p>\n\n\n\n

The rule defines a \u201cnon-compete clause\u201d as a contractual term that blocks a worker from working for a competing employer or starting a competing business within a particular geographic area and period of time after the worker\u2019s employment ends. It is essential to mention that the ban does not explicitly invalidate other covenants, such as nonsolicitation, nonservicing, non-recruitment, and nondisclosure clauses.<\/p>\n\n\n\n

The rule goes into effect 120 days following its publication in the Federal Register<\/em>.<\/p>\n\n\n\n

Next Steps for Employers<\/strong><\/h2>\n\n\n\n

\u201cEmployers concerned about the FTC rule and broader legislative and regulatory efforts to restrict the use of non-compete agreements may look to other options to protect their confidential information and business relationships,\u201d added Melissa McDonagh, an attorney in the Boston office of Littler. \u201cThis could include nondisclosure and nonsolicitation agreements, though it\u2019s still important to ensure that those agreements comply with local, state, and federal laws.\u201d<\/p>\n\n\n\n

Read more here: FTC Announces Rule Banning Noncompetes | Federal Trade Commission<\/mark><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. Federal Trade Commission (FTC) approved a proposed final rule banning most new non-compete clauses in employment contracts, a rule that will affect millions of workers. Under the FTC\u2019s new rule, existing non-competes for most workers will no longer be enforceable after the rule\u2019s effective date. An exception would apply to those covering senior executives. The […]<\/p>\n","protected":false},"author":3,"featured_media":535,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[64],"class_list":["post-532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-labor-laws","tag-non-compete"],"yoast_head":"\nMost New Non-Compete Agreements Banned by FTC - Payroll & Benefits Solutions Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pbspay.com\/news\/2024\/04\/24\/most-new-non-compete-agreements-banned-by-ftc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Most New Non-Compete Agreements Banned by FTC\" \/>\n<meta property=\"og:description\" content=\"The U.S. Federal Trade Commission (FTC) approved a proposed final rule banning most new non-compete clauses in employment contracts, a rule that will affect millions of workers. 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