{"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>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>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>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><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>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>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>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_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-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 v27.2 - 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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The final rule was publicized in the Federal Register on Sept. 24, 2021, and is expected to become effective on Nov. 23, 2021. 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Background - On Jan. 10, 2024, the DOL published a final rule revising the agency\u2019s guidance on\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":3248,"url":"https:\/\/www.employco.com\/blog\/2021\/01\/08\/hr-newsletter-dol-amends-employee-tip-regulations\/","url_meta":{"origin":5373,"position":3},"title":"HR Newsletter: DOL Amends Employee Tip Regulations","author":"Employco USA","date":"January 8, 2021","format":false,"excerpt":"On Dec. 22, 2020, the U.S. Department of Labor (DOL) announced a final rule to amend employee tip regulations under the Fair Labor Standards Act (FLSA). The final rule will become effective 60 days after its publication in the Federal Register. Tip Pooling - The FLSA allows employers to collect\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":"Department of Labor","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":4080,"url":"https:\/\/www.employco.com\/blog\/2022\/07\/14\/hr-newsletter-proposed-overtime-rule-expected-in-october\/","url_meta":{"origin":5373,"position":4},"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":5714,"url":"https:\/\/www.employco.com\/blog\/2025\/02\/24\/hr-newsletter-hr-compliance-quarterly-updates\/","url_meta":{"origin":5373,"position":5},"title":"HR Newsletter: HR Compliance \u2013 Quarterly Updates","author":"Employco USA","date":"February 24, 2025","format":false,"excerpt":"Keeping up with compliance developments can be difficult and time-consuming. This quarterly update highlights recent legal developments to help your organization stay on top of new requirements and minimize compliance risks. \u00a0This document includes updates on the following topics: New Legislation Simplifies ACA Reporting Requirements DOL Issues Opinion Letter on\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":[]}],"_links":{"self":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/5373","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/comments?post=5373"}],"version-history":[{"count":5,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/5373\/revisions"}],"predecessor-version":[{"id":5390,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/5373\/revisions\/5390"}],"wp:attachment":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/media?parent=5373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/categories?post=5373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/tags?post=5373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}