Federal Trade Commission’s New Rule Bans Non-Compete Agreements in All Employment Contracts

Non-compete agreements often prevent employees from working for other employers in the same industry and geographic area for a significant amount of time after employees leave their jobs.

The Federal Trade Commission (FTC) recognizes that these agreements can be a source of great stress for many individuals. Non-compete agreements diminish employees’ options for finding better work or making changes for their well-being, and the agreements cut off other employers’ access to a talented workforce. 

Fortunately, a recent FTC non-compete ban will soon eliminate the enforceability of non-compete contracts against the vast majority of workers in the United States. If you have questions about your rights under this new ban, bring them to Ottinger Employment Lawyers.

Our experienced legal team devotes our practice to helping employees in California and New York, and we have already helped thousands.

What Is the FTC Non-Compete Ban?

On April 23, 2024, the FTC issued a final rule for an FTC non-compete ban to update the kind of control employers can have over their current and former employees.

Under this new rule, employers can’t enter into non-compete agreements with any new employees, and employers can’t enforce existing non-compete agreements against most employees who have already signed them.

So, if you have signed a non-compete agreement and want to take a different job in the same field, you likely can. But you should first speak to us about your options. There are some exceptions to this ban that could apply to you. 

Does the Non-Compete Ban Apply to Every Employee?

No. While employers cannot enter into new non-compete agreements with any employee or enforce existing agreements against most, employers can still enforce existing non-compete contracts against senior executives.

Under the FTC non-compete ban of 2024 changes, a senior executive is an employee who:

  • Is in a policy-making position, and 
  • Making more than $151,164 per year.

Senior executives account for less than 0.75% of the workforce. However, if you qualify as a senior executive at your workplace, we can review your situation and help you make the best decisions for your professional life. 

When Does the Non-Compete Agreement FTC Ban Go into Effect?

Under the FTC non-compete ban timeline, this final rule will take effect 120 days after the FTC publishes it in the Federal Register.

Once the rule becomes effective, employers must notify employees that existing non-compete agreements will not be enforced. 

What If My Employer Tries to Enforce a Non-Compete Agreement?

If your employer tries to enforce a non-compete agreement after the FTC ban becomes effective, you can report non-compete violations to the FTC.

Additionally, if your employer tries to take prohibited legal action against you, we can quickly intervene to stop the case and remind your employer of your rights.

If your employer tries to enforce a non-compete agreement before the FTC ban becomes effective, you might have the right to take legal action under state law.

For example, California already has a non-compete ban in place, and not all non-compete agreements are enforceable in New York. We can guide you through the most effective solution to any non-compete issue you face. 

Ottinger Employment Lawyers Protects Employees’ Freedom

Ottinger Employment Lawyers has been in practice for 25 years, and we focus exclusively on protecting employees’ rights.

We are an award-winning legal team that has recovered over $400 million for employees and receive stellar reviews from our clients.

Please call or contact us online if you need a strong and knowledgeable advocate in your employment law case.

Author Photo

Robert Ottinger, Esq.

Robert Ottinger is an employment attorney who focuses on representing executives and employees in employment disputes. Before starting his firm, Robert slugged it out in courtrooms trying cases for the government. Robert served as a Deputy Attorney General for the California Department of Justice in Los Angeles and then as Assistant Attorney General for the New York Attorney General’s Office in Manhattan.

Rate this Post

1 Star2 Stars3 Stars4 Stars5 Stars