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FTC Non-Compete Ban: What You Need to Know

In a significant move to promote competition and empower workers, the federal government has taken a decisive step by implementing a ban on non-compete agreements. This development marks a pivotal moment in employment law, with far-reaching implications for employers and employees.

Understanding the Ban:

The federal government’s decision to ban non-compete agreements marks a significant shift in employment law, aimed at promoting fairness, competition, and mobility in the labor market. This ban has direct implications for employers like you and your valued employees. The regulation, which the Federal Trade Commission (FTC) officially approved on April 23, and slated to take effect August 2024, encompasses three pivotal changes:

  1. Non-compete clauses with your employees will be prohibited.
  2. Existing non-compete agreements cannot be enforced, except in cases involving specific senior executives.
  3. Both current and former employees must receive notice that their non-compete agreements are no longer enforceable.

What This Means for You:

As business owners and leaders, it’s essential to understand the implications of the ban on non-compete agreements and how it may affect your organization:

  • Reviewing Existing Policies
    • Take the time to review your company’s existing employment agreements and policies to identify any non-compete clauses that the ban may impact. Work with your Lever1 HR team and chosen legal counsel to make necessary revisions to ensure compliance.
  • Employee Mobility
    • With the removal of non-compete restrictions, your employees now have greater freedom to pursue career opportunities outside of your organization. Embrace this newfound mobility and focus on fostering a positive work environment that encourages loyalty and engagement.
  • Retaining Talent
    • In light of increased employee mobility, prioritizing employee retention strategies is more important than ever. Consider offering competitive compensation packages, opportunities for career advancement, and a supportive work culture to retain top talent within your organization.

How We Can Help:

As your HR partner, we are here to support you every step of the way as you navigate this transition. Here’s how we can assist:

  • Policy Review and Revision
    • We can assist you in reviewing and revising your company’s policies and employment agreements to ensure compliance with the ban on non-compete agreements.
  • Employee Education
    • We can provide training and resources to educate your employees about their rights and responsibilities under the new regulations, fostering transparency and open communication within your organization.
  • Strategic Planning
    • We can work with you to develop strategic workforce planning initiatives to optimize talent management and retention strategies in light of the ban on non-compete agreements.

Moving Forward:

As we adapt to the changes brought about by the federal ban on non-compete agreements, let’s seize this opportunity to create a more inclusive, competitive, and thriving workplace for your employees. By embracing fairness, transparency, and collaboration, we can navigate this transition successfully and position your organization for continued growth and success.


Shannon Taylor | Vice President of Human Resources and Client Services

Shannon brings over 20 years of experience in all areas of HR including HR Strategy, Recruitment and Employee Management. She has experience serving as a resource and advisor to clients on all areas of HR, including performance management, onboarding, terminations, handbook creation and updates, training, investigations, complaints and company P&P.