The Federal Trade Commission voted to ban noncompete clauses for most U.S. workers April 23. The rule would make it illegal to include noncompetes in employment contracts unless the employer is a nonprofit, as the FTC’s jurisdiction does not generally cover tax-exempt organizations, according to an article by law firm Sheppard, Mullin, Richter & Hampton published April 30 in National Law Review.
Are nonprofits exempt from FTCs' noncompete ban?
