TIL: FTC Announces Rule Banning Noncompetes
Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamental freedom of workers to change jobs, increasing innovation, and fostering new business formation. Does this change the tech industry? 🔗 https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-rule-banning-noncompetes #TIL #ftc #noncompete
California already banned them
I hate that question why did you change the employer after just 1 year. Nobody was asking me it before 2024 and now every intern interviewing me is entitled to ask it
Now the answer is: because I can
What does this have to do with job hoppers?
CA lawyer here. While it's true that noncompetes have been unenforceable in CA for a while, this rule will have broader reach and is a huge deal. Congratulations workers!
Agreed 💯
Changes very little in tech. Noncompetes already weren’t a thing in California.
There are 49 other states. But thanks for the narrow micro POV👍
“The FTC estimates nearly one in five Americans are subject to noncompetes. They have grown increasingly common in lower wage or hourly work industries like fast food franchises, restaurants, and security firms, where some employers have sought to limit the ability of workers to effectively raise their pay by looking for work at competing establishments.” https://www.nbcnews.com/business/business-news/biden-administration-bans-noncompete-agreements-setting-legal-showdown-rcna149069
This is great. Employees are free to talk to whoever they want whenever they want for future opportunities. Recruiters wont hesitate to reach out too. It is a free and fair market now.
It’s certainly a step in the right direction / pro-employee. The veiled threats of these NCs have become obnoxious over the years—glad this has ceased
BiDeN iS tHe WoRsT. When will he do something to help the workers. Worst FTC ever. /s
Noncompetes were already mostly unenforceable.
How so?
Judges throw them out all the time, especially in WA.