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Under the Noncompete Rule, the FTC adopts a comprehensive ban on new noncompetes with all workers, including senior executives. The final rule is due to go in effect September 4, 2024. 

The final Noncompete Rule provides that it is an unfair method of competition—and therefore a violation of Section 5—for employers to enter into noncompetes with workers.

For existing noncompetes, the final rule adopts a different approach for senior executives than for other workers. For senior executives, existing noncompetes can remain in force. Existing noncompetes with workers other than senior executives are not enforceable after the effective date.

  • Fewer than 1% of workers are estimated to be senior executives under the final rule.
  • Specifically, the final rule defines the term “senior executive” to refer to workers earning more than $151,164 who are in a “policy-making position.”
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Noncompete Rule

Learn more about the official text of the rule, record documents, comments from the public, past events and much more.

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State-by-State Fact Sheets

Want to hear reactions to our proposed rule from across the country? Check out these Constituent Support fact sheets to hear directly from American workers on how the rule will benefit them when it goes into effect on September 4.

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Report Violations

Suspect an employer is violating the ban? Once the rule is effective, market participants can report information on a suspected violation of the rule to the Bureau of Competition by emailing noncompete@ftc.gov.

How Will a Noncompete Ban Help American Workers?
Noncompetes Infographic 
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The FTC estimates that banning noncompetes will result in:

  • Reduced health care costs: $74-194 billion in reduced spending on physician services over the next decade.
  • New business formation: 2.7% increase in the rate of new firm formation, resulting in an additional 8,500 new businesses created each year.
  • Rise in innovation: an average of 17,000-29,000 more patents each year.
    • This reflects an estimated increase of about 3,000 to 5,000 new patents in the first year noncompetes are banned, rising to about 30,000-53,000 in the tenth year.
    • This represents an estimated increase of 11-19% annually over a ten-year period.
  • Higher worker earnings: $400-$488 billion in increased wages for workers over the next decade.
    • The average worker’s earnings will rise an estimated extra $524 per year.
  • Next Steps
    • The final rule is set to go into effect on September 4, 2024.
    • Once the rule is effective, market participants can report information on a suspected violation of the rule to the Bureau of Competition by emailing noncompete@ftc.gov.
Resources and Model Notices
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Noncompete Rule Resources

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Model Notices in Different Languages

Recent Press Releases

Get the latest updates on the FTC's actions surrounding noncompetes.

Latest Press Releases

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