Advertisement

FTC Bans Noncompete Clauses

April 25, 2024

The U.S. Federal Trade Commission has issued a final rule banning noncompete clauses.

Under the FTC’s new rule, existing noncompetes for the vast majority of workers will no longer be enforceable after the rule’s effective date, which is 120 days after its publication in the Federal Register. Existing noncompetes for senior executives—less than 0.75% of workers—can remain in force under the FTC’s final rule, but employers are banned from entering into or attempting to enforce any new noncompetes. According to an FTC press release, estimated 30 million workers—nearly one in five Americans—are subject to a noncompete clause.

In a February 2023 letter to Congress, ISSA opposed the FTC’s proposed rule to impose a nationwide ban on noncompete clauses because, according to the coalition letter, the FTC “lacks the constitutional or statutory authority to issue such a rule and, in attempting to do so, the agency is improperly usurping the role of Congress.” The FTC received more than 26,000 public comments in the months leading up to the vote, according to NPR.

The U.S. Chamber of Commerce has said it will sue the FTC to block the rule for what it views as the agency exceeding its administrative authority, CNN reported.

To learn more about this issue and ISSA advocacy, please contact ISSA Director of Government Affairs John Nothdurft.

Latest Articles

The Power of Relationships in the Janitorial Industry
March 4, 2025 Derek Oliveira & David Swindle II

The Power of Relationships in the Janitorial Industry

March 3, 2025

Hygienic Revo Tissue & Towel Dispensers from Domtar Curb Costs & Waste

February 27, 2025 Brant Insero

Recognizing Custodians and Janitors

Sponsored Articles

Hygienic Revo Tissue & Towel Dispensers from Domtar Curb Costs & Waste
March 3, 2025

Hygienic Revo Tissue & Towel Dispensers from Domtar Curb Costs & Waste

February 25, 2025 Sponsored by Ecolab

Sleek, Smart, Sustainable: How Nexa™ Concentrates 2.0 is Redefining Hand Hygiene

February 19, 2025 Sponsored by Tennant

Effortless Clean, Maximum Impact: The Features That Make the i-mop® Truly Unique

Recent News

Department of Health and Human Services

HHS Removes Notice and Public Comment Requirements

Trump Layoffs Affect Hundreds in Weather Forecasting

FDA Cancels Annual Flu Vaccine Meeting, WHO Makes Recommendations