Search results
Apr 23, 2024 · Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamental freedom of workers to change jobs, increasing innovation, and fostering new business formation. “Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including ...
Apr 23, 2024 · The final rule bans new noncompetes with all workers, including senior executives after the effective date. Specifically, the final rule provides that it is an unfair method of competition—and therefore a violation of Section 5 of the FTC Act—for employers to enter into noncompetes with workers after the effective date.
Apr 23, 2024 · By banning noncompetes, the FTC estimates that: New business formation will grow by 2.7%, creating over 8,500 new businesses each year. American workers’ earnings will increase by $400-$488 billion over the next decade, with workers’ earnings rising an estimated $524 a year on average. Health care costs will be reduced by $74-$194 billion ...
Apr 23, 2024 · April 23, 2024. The Federal Trade Commission on Tuesday said employers could no longer, in most cases, stop their employees from going to work for rival companies. The sweeping action could...
The Federal Trade Commission proposed a new rule that would ban employers from imposing noncompetes on their workers, a widespread and often exploitative practice that suppresses wages, hampers innovation, and blocks entrepreneurs from starting new businesses.
Rule to Ban Noncompetes Clauses: The Commission will vote on whether to issue a proposed final rule that would prevent most employers from enforcing noncompetes against workers. The proposed final rule being considered would generally prevent most employers from using noncompete clauses.
On January 5, 2023, the Federal Trade Commission released a Notice of Proposed Rulemaking (NPRM) to prohibit employers from imposing noncompete clauses on workers. True to their name, noncompetes block people from working for a competing employer, or starting a competing business, after their employment ends.
