Roundup: US employer resources on recent noncompete restrictions 

Noncompete agreements prevent former employees from working for a competing employer or starting a competing business for a certain time period after their employment ends. At the federal level, the Federal Trade Commission (FTC) issued a final rule banning noncompetes, scheduled to take effect on Sept. 4, 2024. However, on Aug. 20, 2024, a federal judge in Texas blocked the rule from taking effect nationwide. While the FTC appealed the ruling, the rule will remain on hold until a future judicial decision either permanently blocks it or upholds it as lawful. The rule has been challenged in other lawsuits, with conflicting results. These divergent rulings and the impact of the recent Supreme Court Loper decision that overturned the “Chevron doctrine” of deference to federal agencies have led to employer uncertainty as to how to proceed. Trump administration policies will likely affect the fate of noncompetition provisions.

At the state level, several states have generally banned noncompete agreements. Numerous other states have enacted restrictions, such as only allowing noncompete agreements for employees above a certain salary threshold. This roundup focuses on recent federal and state actions to restrict noncompete provisions and provides links to federal and state resources from organizations, government websites, third-party resources and news articles.

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