FTC Bans Noncompete Clauses in Employment Agreements

Molly PereiraFeatured News

The Federal Trade Commission (FTC) issued a new rule in 2024 banning noncompete clauses in employment agreements (effective 120 days from publication in the Federal Register).

This rule potentially affects practice-owning dentists who have employment agreements with associates, hygienists or other staff as well as dentists who are employees and currently subject to a noncompete clause. The new FTC final rule applies to noncompetes entered into after the effective date and some noncompetes currently in existence. Specifically, existing noncompetes can remain in force for senior executives after the effective date but not for other workers. The FTC defines senior executives as workers earning more than $151,164 annually and who are in policy-making positions.

Learn more from ADA News: https://adanews.ada.org/ada-news/2024/april/ftc-issues-ban-on-noncompete-clauses/


Free downloadable resource for members titled A Dentist’s Guide to Selecting a Lawyer: https://engage.ada.org/p/dr/a-dentists-guide-to-selecting-a-lawyer-945

Previous article for reference: ADA News Jan 2023