your non-compete agreement is now illegal (or it will be in 4 months) — Ask a Manager

your non-compete agreement is now illegal (or it will be in 4 months)

The Federal Trade Commission yesterday banned non-compete agreements for most U.S. workers, saying that they stifle wages.

The ruling not only makes non-competes illegal, but it also requires employers to to inform employees with existing non-competes that they are null and void.

An exception was carved out for senior executives; the ruling would allow non-competes only for that small group. It’s also important to note that the ruling will not apply to nonprofits since the FTC doesn’t have authority over them.

The ruling is slated to take effect in 120 days … but court challenges from business groups are expected.

Meanwhile, non-competes have already been banned in California, North Dakota, and Oklahoma, and 11 more states and Washington, D.C. prohibit them for hourly wage workers or workers below a salary threshold.

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