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FTC bans noncompete agreements: What are workers rights now?

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  • Staff Report 

Noncompete agreements are dead after a 3-2 vote by the Federal Trade Commission on Tuesday.

The April 23 vote means companies have to let past and current employees know they will not enforce any agreements in place currently.

Around 30 million people are subject to noncompetes currently in the U.S.

The FTC contends that the only exceptions will exist for ‘policy-making positions’, when an individual earns more than $151,164 per year.

“The FTC’s final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market,” FTC Chair Lina Khan said in a statement.

The ban will take place later this year.



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