what is a non compete agreement 
a non compete agreement is a legal agreement or clause in a contract specifying that an employee must not enter into competition with an employer after the employment period is over these agreements also prohibit the employee from revealing proprietary information or secrets to any other parties during or after employment many contracts specify a certain length of time when the employee is barred from working for a competitor after they end employment employers may require employees to sign non compete agreements to keep their place in the market those required to sign these agreements may include employees contractors and consultants on april 23 2024 the federal trade commission ftc issued a final rule banning non compete clauses the rule aims to protect workers freedom to change jobs increase innovation and generate new business the ftc first issued the proposed ban on jan 5 2023 it believes this ban will help an estimated 30 million people 