FTC Noncompete Ban: Employers’ Next Steps
April 29th 2024 by Roy Maurer @ www.shrm.com
While the U.S. Federal Trade Commission’s (FTC’s) new rule banning noncompete agreements faces legal challenges, workplace experts say employers should prepare for the rule by reviewing existing agreements, exploring alternatives and focusing on retention efforts, which have taken on added importance.
The FTC voted April 23 to prohibit most new noncompete agreements in employment contracts. The rule also makes all existing noncompete agreements except for those covering senior executives unenforceable and requires employers to provide notice to current and former workers that their noncompete clauses are no longer in effect.