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Federal regulators are tearing up the controversial agreements that forbid millions of workers from taking jobs at companies that compete with their ex-employer. But noncompete clauses might not be gone for good, employment lawyers say — at least, not yet.
More than a year after proposing to block most noncompete agreements, the Federal Trade Commission’s top officials voted 3-2 on Tuesday to do just that.
Under the FTC’s ban, employers would have to tell workers their noncompete agreements are no longer enforceable. The rule also would ban most noncompetes in the private sector going forward. Existing agreements for people in “senior executive” roles go untouched, but the rule bans future noncompete agreements for these C-suite leaders going forward.