Keith Wilkes, a partner at law firm Hall Estill and a labor and employment legal expert, also anticipates a legal challenge to the FTC decision. We could still be talking about this, and continue to remain uncertain about the future of noncompetes, in a month or even after the presidential election.” “From a practical perspective, this is not the final say - employers do not need to shred their noncompetes.

“Everybody can take a breath, as the FTC vote may not impact business today or even tomorrow, because we expect legal challenges that delay implementation,” said Heather Weine Brochin, chair of the employment and labor practice at law firm Day Pitney.

The three Democratic commissioners (Khan, Rebecca Kelly Slaughter and Alvaro Bedoya) voted yes the two Republican commissioners (Melissa Holyoak and Andrew Ferguson) voted no.Įmployment experts said the FTC rule banning noncompetes will be challenged. The agency’s vote to approve the issuance of the final rule was 3-2. workers, nearly one in five Americans, are subject to a noncompete. The FTC estimates that some 30 million U.S. “The FTC’s final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business or bring a new idea to market.” “Noncompete clauses keep wages low, suppress new ideas and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once noncompetes are banned,” FTC chair Lina Khan ( pictured above) said in a statement.

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