In a 3-2 vote, the Federal Trade Commission passed a final rule that bans new noncompete agreements with all workers in for-profit organizations.
For existing noncompetes, the Federal Trade Commission (FTC) rule allows companies to maintain agreements with senior executives who earn more than $151,164 annually and are in policy-making positions. For all other workers, existing noncompete agreements “are not enforceable” after the rule goes into effect, an FTC press release said.
The rule goes into effect 120 days after it is published in the Federal Register. It does not (Read more...)