{"id":4481,"date":"2023-02-14T15:44:33","date_gmt":"2023-02-14T21:44:33","guid":{"rendered":"https:\/\/www.employco.com\/blog\/?p=4481"},"modified":"2023-02-14T15:57:21","modified_gmt":"2023-02-14T21:57:21","slug":"hr-newsletter-ftc-proposed-rule-banning-non-compete-agreements","status":"publish","type":"post","link":"https:\/\/www.employco.com\/blog\/2023\/02\/14\/hr-newsletter-ftc-proposed-rule-banning-non-compete-agreements\/","title":{"rendered":"HR Newsletter: FTC Proposed Rule Banning Non-compete Agreements"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"https:\/\/www.employco.com\/images\/newsletter\/hr\/blog\/February2023_FTC.png\" alt=\"HR Newsletter: FTC Proposed Rule Banning Non-compete Agreements\" width=\"5000\" height=\"2271\" \/><\/p>\n<p>Recently, the Federal Trade Commission (FTC) announced a <a href=\"https:\/\/www.ftc.gov\/legal-library\/browse\/federal-register-notices\/non-compete-clause-rulemaking\" target=\"_blank\" rel=\"noopener\">proposed rule<\/a> that would prohibit employers from imposing or enforcing non-compete clauses on workers. The proposed rule will have a public comment window of 60 days after publication in the Federal Register.<\/p>\n<ul>\n<li><strong>The Rationale for the Proposed Rule<\/strong> &#8211; The FTC\u2019s proposed rule is based on President Joe Biden\u2019s 2021 Executive Order on Promoting Competition in the American Economy, which encouraged the FTC to exercise its statutory rule-making authority under the Federal Trade Commission Act to \u201ccurtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.\u201d<\/li>\n<\/ul>\n<p><!--more--><\/p>\n<ul>\n<li><strong>Overview of the Proposed Rule<\/strong> &#8211; If adopted, the proposed rule would:\n<ul style=\"list-style-type: circle;\">\n<li>Ban employers from entering into non-compete clauses with workers and independent contractors<\/li>\n<li>Require employers to rescind existing non-compete clauses with employees<\/li>\n<li>Require employers to actively inform their employees that their non-compete agreements are no longer in effect<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><strong>Impact on Employers<\/strong> &#8211; At this stage, the proposed rule does not create any new obligations for employers. However, employers who use non-compete agreements should become familiar with the proposal. Interested employers can <a href=\"https:\/\/www.regulations.gov\/docket\/FTC-2023-0007\/document\" target=\"_blank\" rel=\"noopener\">submit comments<\/a> to the FTC.<\/li>\n<\/ul>\n<p><a href=\"mailto:jeisenhut@employco.com\">Contact us<\/a> today for support with new hire offer letters and other employment-related policies and agreements.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the Federal Trade Commission (FTC) announced a proposed rule that would prohibit employers from imposing or enforcing non-compete clauses on workers. The proposed rule will have a public comment window of 60 days after publication in the Federal Register.&hellip;  <\/p>\n<p class=\"more-link\"><a href=\"https:\/\/www.employco.com\/blog\/2023\/02\/14\/hr-newsletter-ftc-proposed-rule-banning-non-compete-agreements\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-4481","post","type-post","status-publish","format-standard","hentry","category-hr-newsletter"],"featured_image_src":null,"author_info":{"display_name":"Employco USA","author_link":"https:\/\/www.employco.com\/blog\/author\/employcousa\/"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>HR Newsletter: FTC Proposed Rule Banning Non-compete Agreements - Employco Blog<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.employco.com\/blog\/2023\/02\/14\/hr-newsletter-ftc-proposed-rule-banning-non-compete-agreements\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"HR Newsletter: FTC Proposed Rule Banning Non-compete Agreements - Employco Blog\" \/>\r\n<meta property=\"og:description\" content=\"Recently, the Federal Trade Commission (FTC) announced a proposed rule that would prohibit employers from imposing or enforcing non-compete clauses on workers. 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The final rule was published in the Federal Register on May 7, 2024, and is scheduled to take effect 120 days\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5306,"url":"https:\/\/www.employco.com\/blog\/2024\/03\/19\/hr-newsletter-3-employment-policies-to-review-in-2024\/","url_meta":{"origin":4481,"position":1},"title":"HR Newsletter: 3 Employment Policies to Review in 2024","author":"Employco USA","date":"March 19, 2024","format":false,"excerpt":"The start of the year provides employers with an excellent opportunity to review and update their policies. This article explores three employment policies employers should consider reviewing in 2024. 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Join us for a quick-hitting\u2026","rel":"","context":"In &quot;Webinar&quot;","block_context":{"text":"Webinar","link":"https:\/\/www.employco.com\/blog\/category\/human-resources\/webinar\/"},"img":{"alt_text":"WEBINAR: What You Need to Know about the Non-compete Ban","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Webinar_08-07-2024_banner.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Webinar_08-07-2024_banner.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Webinar_08-07-2024_banner.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Webinar_08-07-2024_banner.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/blog\/Blog_Webinar_08-07-2024_banner.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":4080,"url":"https:\/\/www.employco.com\/blog\/2022\/07\/14\/hr-newsletter-proposed-overtime-rule-expected-in-october\/","url_meta":{"origin":4481,"position":3},"title":"HR Newsletter: Proposed Overtime Rule Expected in October","author":"Employco USA","date":"July 14, 2022","format":false,"excerpt":"In its recent spring regulatory agenda, the U.S. Department of Labor (DOL) announced its plans to issue a proposed overtime rule in October 2022. According to the agency\u2019s regulatory agenda, this proposed rule is expected to address how to implement the exemption of executive, administrative and professional employees from the\u2026","rel":"","context":"In &quot;HR Newsletter&quot;","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"Proposed Overtime Rule Expected in October","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":5514,"url":"https:\/\/www.employco.com\/blog\/2024\/08\/16\/hr-chat-w-employco-usa-ftc-non-compete-ban-still-effective-for-sept-4-for-now\/","url_meta":{"origin":4481,"position":4},"title":"HR Chat w\/Employco USA: FTC Non-Compete Ban Still Effective for Sept 4 (for now)","author":"Employco USA","date":"August 16, 2024","format":false,"excerpt":"https:\/\/youtu.be\/4fTJ3woTSOE Join Rob and Jason in this HR Chat as they discuss the upcoming changes surrounding the FTC\u2019s non-compete ban, which is expected to take effect on September 4th. They provide insights into what this could mean for employers and employees, emphasizing the need for preparation and clear communication -\u2026","rel":"","context":"In &quot;HR Chat&quot;","block_context":{"text":"HR Chat","link":"https:\/\/www.employco.com\/blog\/category\/human-resources\/hr-chat\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/img.youtube.com\/vi\/4fTJ3woTSOE\/0.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":3360,"url":"https:\/\/www.employco.com\/blog\/2021\/04\/14\/hr-newsletter-tip-rule-upcoming-changes\/","url_meta":{"origin":4481,"position":5},"title":"HR Newsletter: Tip Rule \u2013 Upcoming Changes","author":"Employco USA","date":"April 14, 2021","format":false,"excerpt":"On December 22, 2020, the U.S. Department of Labor (DOL) published a final rule to amend employee tip regulations under the Fair Labor Standards Act (FLSA). 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