FTC votes to ban noncompete agreements

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The Federal Trade Commission (FTC) voted 3-2 to ban noncompete agreements that prevent around 30 million employees from working for competitors or starting a competing business after they leave a job. The final rule would ban new noncompete agreements for all workers and require companies to let current and past employees know they won’t enforce them. The new rule is slated to go into effect in 120 days after it’s published in the Federal Register. Pro-business groups opposing the rule are expected to take legal action to block its implementation. Congress has not given the agency explicit authority to ban noncompetes, although there have been several bipartisan bills introduced to reform noncompete agreements. Business groups argue that noncompete agreements are critical for protecting proprietary information and intellectual property. The U.S. Chamber of Commerce has said it will sue to block the rule.

#Ftc #NoncompeteAgreements #Business #Employment

https://thehill.com/business/4615452-ftc-votes-to-ban-non-compete-agreements/