The Death of the Non-Compete? What the FTC Ban Means for You

For decades, employers have used non-compete agreements to lock employees in place, preventing them from moving to better jobs or starting their own businesses. In a historic shift, the FTC has moved to ban them. Here is what you need to know.

The FTC's Bold Move

The Federal Trade Commission (FTC) has finalized a comprehensive ban on new non-compete agreements for almost all workers. They estimate this will increase workers' earnings by nearly $300 billion per year and spur the creation of 8,500 new startups annually.

Are You Free?

• Existing Non-Competes: For the vast majority of workers (senior executives excluded), existing non-competes are now effectively unenforceable. You do not need to do anything; the law supersedes the contract.
• New Non-Competes: It is now illegal for an employer to ask you to sign one.

The Loophole: Non-Disclosure & Non-Solicitation

While "Non-Competes" (you can't work for a competitor) are dying, "Non-Solicitation" (you can't steal our clients) and "NDAs" (you can't steal our secrets) are stronger than ever.

What About Senior Executives?

The ban has an exception for "Senior Executives"—defined as workers earning more than $151,164 annually who are in "policy-making positions." If you fall into this bucket, your existing non-compete might still stick.