On April 23, 2024 the U.S. Federal Trade Commission announced finalization of a rule banning noncompete agreements nationwide at for-profit companies. This applies to all workers regardless of job title, classification, or compensation level. It offers a limited exception for existing noncompete agreements with senior-executives holding “policy-making positions” and earning over $151,164 annually. Employers must inform all other employees that existing agreements are invalid.
Noncompete agreements safeguard proprietary information, client relationships, and financial investments while helping companies ensure a stable workforce, foster continuity and maintain a competitive within the industry. Some ARTBA members have noted noncompete agreements can factor into the valuation of industry firms.
