{"id":5373,"date":"2024-05-23T10:36:26","date_gmt":"2024-05-23T15:36:26","guid":{"rendered":"https:\/\/www.employco.com\/blog\/?p=5373"},"modified":"2024-05-31T14:13:41","modified_gmt":"2024-05-31T19:13:41","slug":"hr-newsletter-ftcs-non-compete-ban","status":"publish","type":"post","link":"https:\/\/www.employco.com\/blog\/2024\/05\/23\/hr-newsletter-ftcs-non-compete-ban\/","title":{"rendered":"HR Newsletter: FTC\u2019s Non-compete Ban"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.employco.com\/images\/newsletter\/hr\/blog\/February2023_FTC.png\" alt=\"HR Newsletter: FTC\u2019s Non-compete Ban\"\/><\/figure>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">On April 23, 2024, the Federal Trade Commission (FTC) <a href=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2024\/04\/ftc-announces-rule-banning-noncompetes\" target=\"_blank\" rel=\"noreferrer noopener\">voted<\/a> to issue a final rule that would prohibit employers from entering into or enforcing noncompete clauses with most employees. The final rule was <a href=\"https:\/\/www.federalregister.gov\/documents\/2024\/05\/07\/2024-09171\/non-compete-clause-rule\" target=\"_blank\" rel=\"noreferrer noopener\">published<\/a> in the Federal Register on May 7, 2024, and is scheduled to take effect 120 days after such date on <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-red-color\">Sept. 4, 2024<\/mark><\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Subject to very limited exceptions, the final rule provides that:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The use of noncompete clauses will be banned as of the effective date;<\/li>\n\n\n\n<li>Any existing noncompete clauses (other than those entered into with senior executives) will be invalidated;<\/li>\n\n\n\n<li>Employers must notify all employees (other than senior executives whose existing noncompete agreements will remain enforceable) that their existing noncompete agreements will not be enforced.<\/li>\n<\/ul>\n\n\n\n<!--more-->\n\n\n\n<p class=\"wp-block-paragraph\">The FTC stated that it aims to promote competition by protecting the freedom of workers to change jobs, increasing innovation, and fostering new business formation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Action Steps<\/strong> &#8211; Employers that use noncompete or similar protective clauses should familiarize themselves with the rule\u2019s requirements and take steps now to prepare for its effective date. Employers should note, however, that at least three lawsuits (including one brought by the U.S. Chamber of Commerce) seeking to block the final rule have already been filed, so employers should monitor for additional legal challenges and prepare for potential uncertainty. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We created a Compliance Bulletin that provides an overview of the key provisions of the final rule and steps employers may take to prepare for the FTC\u2019s ban on noncompete clauses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Click the following link to read the bulletin: <a href=\"https:\/\/www.employco.com\/PDFs\/May2024_HR-Compliance-Bulletin-2.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Preparing for the FTC\u2019s Noncompete Ban<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.employco.com\/PDFs\/May2024_HR-Compliance-Bulletin-2.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/www.employco.com\/images\/newsletter\/HR\/Blog\/May2024_HR-Compliance-Bulletin-2-PDF.jpg\" alt=\"Preparing for the FTC\u2019s Noncompete Ban\"\/><\/a><\/figure>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Check out our podcast on this topic where Rob, Scott, and Jason unpack the FTC\u2019s ban on non-compete agreements: <a href=\"https:\/\/www.employco.com\/blog\/2024\/05\/30\/podcast-navigating-the-new-non-compete-ban\/\" target=\"_blank\" rel=\"noreferrer noopener\">Navigating the New Non-Compete Ban<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.employco.com\/blog\/2024\/05\/30\/podcast-navigating-the-new-non-compete-ban\/\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" src=\"https:\/\/www.employco.com\/images\/blog\/Blog_Podcast_New-Ban-on-Non-Competes.jpg\" alt=\"\"\/><\/a><\/figure>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a final rule that would prohibit employers from entering into or enforcing noncompete clauses with most employees. The final rule was published in the Federal Register on May&hellip;  <\/p>\n<p class=\"more-link\"><a href=\"https:\/\/www.employco.com\/blog\/2024\/05\/23\/hr-newsletter-ftcs-non-compete-ban\/\">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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[31],"tags":[],"class_list":["post-5373","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 v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>HR Newsletter: FTC\u2019s Non-compete Ban - 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\/2024\/05\/23\/hr-newsletter-ftcs-non-compete-ban\/\" \/>\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\u2019s Non-compete Ban - Employco Blog\" \/>\r\n<meta property=\"og:description\" content=\"On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a final rule that would prohibit employers from entering into or enforcing noncompete clauses with most employees. 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On April 23, 2024, the U.S. Department of Labor (DOL) announced a final rule to amend current requirements employees in white-collar occupations must satisfy to qualify for an\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":5310,"url":"https:\/\/www.employco.com\/blog\/2024\/03\/19\/hr-newsletter-equal-employment-opportunity-commission-eeoc-updates\/","url_meta":{"origin":5373,"position":4},"title":"HR Newsletter: Equal Employment Opportunity Commission (EEOC) Updates","author":"Employco USA","date":"March 19, 2024","format":false,"excerpt":"Responding to an EEOC Charge of Discrimination - The U.S. Equal Employment Opportunity Commission (EEOC) is a federal agency responsible for enforcing federal employment discrimination laws. It has the authority to investigate and resolve discrimination complaints filed by individuals against employers covered by the laws it enforces. Responding to an\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":5340,"url":"https:\/\/www.employco.com\/blog\/2024\/04\/18\/hr-newsletter-preparing-for-the-dols-new-overtime-rule\/","url_meta":{"origin":5373,"position":5},"title":"HR Newsletter: Preparing for the DOL&#8217;s New Overtime Rule","author":"Employco USA","date":"April 18, 2024","format":false,"excerpt":"In early March 2024, the U.S. Department of Labor\u2019s (DOL) proposed overtime rule, announced in August 2023, entered its last stage of review. Publication of the final rule is expected soon. 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