Catherwood LibraryILR School

The United States Federal Trade Commission passed a new rule earlier this year that banned employee non-compete agreements. This rule would prohibit companies from issuing non-complete agreements: contracts that prevent employees from working at competing firms and revealing company information. This rule was set to go into effect in early September, but a federal judge recently blocked the ruling. The judge stated that the Federal Trade Commission does not have the authority or power to ban non-compete agreements. The ban would terminate almost every non-compete agreement, and the ruling determined that the ban was too broad. Currently, companies have to meet state laws regarding non-compete agreements, and around twenty percent of US workers have signed these agreements.