Despite mounting legal and regulatory pressure, a significant majority of U.S. employers — 74% — continue to rely on noncompete agreements to safeguard their business interests, according to a 2023 U.S. Government Accountability Office (GAO) report. This enduring reliance persists even as the legal landscape surrounding noncompetes grows increasingly complex and uncertain.
In April 2024, the Federal Trade Commission (FTC) issued a rule banning noncompete agreements for most U.S. workers, with exceptions only for senior executives. The rule, originally set to take effect in September 2024, was blocked by a federal court just weeks before implementation. While the FTC’s broader enforcement remains stalled, the agency signaled its intent to pursue individual enforcement actions.
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