Federal Judge Blocks FTC Non-Compete Ban
Effective: Not Applicable
Recently, the Federal Trade Commission (FTC) published a rule that would effectively ban non-compete agreements. It was scheduled to take effect 9/4/2024, however a federal judge has barred the rule from taking effect. This means that as of now, non-competes are still allowable federally, though some states already have legislation that restricts non-competes.
There is a chance this decision could be appealed, but as of now the rule will no longer go into effect. Non-competes are highly controversial, and it seems likely that even if this rule doesn’t go through, other state or federal legislation will eventually be drafted to address the practice.
Employers do not need to take action, but they should review their state legislature to ensure they are compliant with state non-compete laws.
Get day-to-day updates on Judge Blocks FTC Non-Compete Ban visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).
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