The FTC just banned most noncompetes

On Tuesday, the FTC voted to ban all new noncompete clauses and render existing noncompetes unenforceable for most private sector workers.

In 2023, the Federal Trade Commission (FTC) took a strong position on noncompete clauses with a proposed rule that would outright ban employers from using them in employment contracts. After a lengthy period of soliciting and reviewing feedback—which yielded more than 26,000 public comments—the FTC finally voted in favor of its final rule today, which will ban new noncompete clauses and render existing noncompetes unenforceable for most private-sector workers.