Sweeping FTC noncompete rule: ‘More questions than answers’

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The Federal Trade Commission recently announced a sweeping rule to ban noncompete agreements for all U.S. employees, with limited exceptions. This unprecedented move could reshape how HR leaders approach hiring and talent management processes. 

In short, the FTC voted 3-2 along party lines last week that noncompetes are “an unfair method of competition” and, therefore, a violation of Section 5 of the FTC Act. The measure is scheduled to take effect this summer. FTC Chair Lina M. Khan

“Noncompete clauses keep wages low, suppress new ideas and rob the American economy of dynamism, including from the more than 8,500 new

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