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FTC Finalizes Ban On Noncompete Agreements
A divided Federal Trade Commission on April 23 finalized a rule prohibiting employers from imposing noncompete agreements on their workers, a controversial regulation that global tax services provider Ryan greeted by filing suit in a Texas federal court saying the FTC's action exceeds its statutory authority.
The U.S. Chamber of Commerce announced its own plans to sue within hours of the FTC's party-line 3-2 vote.
The rule will generally ban employers from entering, maintaining or attempting to enter a noncompete agreement with an employee, or conveying — absent a good-faith basis — that a worker is subject to a noncompete clause.
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