Ftc Non Compete Update

FTC Announces Virtual Open Commission Meeting on Non-Compete Agreement Ban

Meeting Scheduled for April 23, 2024

Agenda Includes Final Rule Impacts and Enforcement

Today, Federal Trade Commission (FTC) Chair Lina M. Khan announced that a special Open Commission Meeting will be held virtually on Tuesday, April 23, 2024, at [time]. The meeting will address the FTC's proposed rule to ban non-compete agreements.

Under the final rule, senior executives are defined as workers earning more than [amount]. The FTC estimates that the ban would boost wages and benefits by up to $488 billion over a decade.

"This is a significant step in our efforts to protect American workers and promote competition," said Chair Khan. "Non-compete agreements stifle innovation, impede economic mobility, and harm workers, especially those in low-wage jobs."

The Open Commission Meeting will provide an opportunity for public comment and discussion on the proposed rule. The meeting will be streamed live on the FTC's website.

The FTC's proposal follows President Biden's executive order encouraging agencies to address the harmful effects of non-compete agreements. The FTC estimates that less than 1% of workers are estimated to be senior executives under the final rule.

The proposed rule would prohibit employers from entering into or enforcing non-compete agreements with their employees. Employers would still be able to protect their legitimate business interests through other means, such as confidentiality agreements and trade secret laws.

The FTC will vote on whether to issue a final rule at the Open Commission Meeting. The FTC is committed to protecting workers' rights and promoting competition in the marketplace.