Under the Noncompete Rule, the 51本色adopted a comprehensive ban on new noncompetes with all workers, including senior executives.
The final Noncompete Rule provides that it is an unfair method of competition鈥攁nd therefore a violation of Section 5鈥攆or employers to enter into noncompetes with workers.
For existing noncompetes, the final rule adopts a different approach for senior executives than for other workers. For senior executives, existing noncompetes can remain in force. Existing noncompetes with workers other than senior executives are not enforceable after the effective date.
- Fewer than 1% of workers are estimated to be senior executives under the final rule.
- Specifically, the final rule defines the term 鈥渟enior executive鈥 to refer to workers earning more than $151,164 who are in a 鈥減olicy-making position.鈥
