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FTC votes to ban most noncompete agreements nationwide, a common practice among big tech corporations

April 23, 2024

Via: TechSpot

The FTC has decided to ban all new noncompete agreements and most existing ones in the US after receiving thousands of comments overwhelmingly in favor of the measure. The new regulation will take effect 120 days after its publication in the federal registry, but the commission has not yet indicated when it will update the registry. The change is expected to take effect later this year.

Only existing noncompete agreements with senior executives can remain valid. This exception applies to those earning over $151,164 annually or holding “policy-making positions,” which account for approximately 0.75 percent of employees.

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