The new rule bans new noncompete agreements for the vast majority of American workers and requires employers to let current and past employees know they won’t enforce them going forward. Companies will also be required to throw out existing noncompete agreements.
Trump’s policies made more than eight million workers ineligible for overtime pay, allowed for the outsourcing and offshoring of American jobs, made it harder for workers to join a union, and failed to protect American workers during the pandemic.
FTC spokesperson Victoria Graham said that the decision “does not prevent the FTC from addressing noncompetes through case-by-case enforcement actions” and said that the agency is “seriously considering” appealing the Texas court’s decision.
Noncompete clauses effectively prevent workers from starting their own business or finding a new job in the same field within a certain area or timeframe after leaving their current job. The Biden-Harris administration’s ban on them is now tentatively set to go into effect on Sept. 4, pending other legal action.
The rules issued last month establish national minimum staffing requirements for federally-funded nursing homes, enact national appointment wait time standards for Medicaid and CHIP enrollees, and more.
The US Department of Labor says updated regulations will increase income thresholds to ensure lower-income salaried employees are fairly compensated when they work more than 40 hours per week.
