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Is this the End of Non-Competes in the USA
At Neufeld Legal, we recently saw the United States Federal Trade Commission vote to institute a new rule as to the interpretation of section 5 of the Federal Trade Commission Act, which bans current and future non-competes in the employment setting, with the exception of existing non-competes for senior executives.
The new rule, which is set to come into effect at the end of August 2024, only provides for one permissible employment-related carve-out, which is provided to existing worker non-competes with respect to senior executives, who are workers earning more than $151,164 USD annually who are in a “policy-making position.”
The US Federal Trade Commission’s explanation for this particular carve-out for existing non-competes with senior executives, was its determination that this subset of workers is less likely to be subject to the kind of acute, ongoing harms currently being suffered by other workers subject to existing non-competes and there were credible concerns raised as to the practical impacts of extinguishing existing non-competes for senior executives. https://www.neufeldlegal.com
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