FTC Bans Noncompete Agreements, Expands Overtime Eligibility

The new FTC rule aims to enhance worker mobility and pay, despite expected legal challenges and mixed reactions from businesses.

The Federal Trade Commission has issued a rule banning noncompete agreements, which will affect most U.S. workers but exclude senior executives.
The Biden administration's new rule will make millions more salaried workers eligible for overtime pay, effective from July 1.
Critics argue that the noncompete ban could boost hiring and innovation, especially in tech, while opponents fear it will lead to more litigation and restrict business competitiveness.
The overtime rule raises the salary cap for eligibility, potentially benefiting 4 million workers not previously covered.
Legal challenges are anticipated for both policies, similar to past disputes over labor regulations.