What the FTC’s New Ban on Noncompete Agreements Might Mean for Your Business

In January 2023, the FTC proposed a groundbreaking rule to ban noncompete agreements, sparking significant public debate. Following a recent 3-2 vote, the final rule classifies these agreements as an “unfair method of competition,” promising to reshape the business landscape. With potential benefits like the creation of over 8,500 new businesses annually and increased earnings for workers, employers must prepare for the rule’s implementation by Fall 2024. Discover how this change could impact your organization and what steps you need to take to adapt. Read on to learn more about the implications for your business!

FTC’s Proposed Ban on Noncompete Agreements — Delayed Again, But Not Dead Yet

In January 2023, the FTC proposed a rule to ban noncompete agreements, claiming it could increase wages by nearly $300 billion annually and benefit 30 million Americans. Labor unions support the initiative, while business groups challenge the FTC’s authority. The comment period has been extended, with a final vote planned for April 2024. As opposition to noncompetes grows, their future remains uncertain. What does this mean for employers and workers?