FTC VOTES TO BAN NONCOMPETE AGREEMENTS
Today, the Federal Trade Commission (FTC) voted 3-2 in favor of a ban on noncompete agreements. The rule, which affects new and existing noncompete agreements, will go into effect 120 days after the rule is published in the Federal Register. Legal action to block implementation of the rule is likely. Nevertheless, employers should still prepare for it to go into effect.
Under the final rule, the FTC adopts a sweeping ban on all new noncompete agreements with workers at all levels, including senior executives. It also makes most existing noncompete agreements unenforceable. Employers will be required to provide notice to those workers bound by existing noncompete agreements that the employer will not be enforcing them. The FTC included model language in the final rule for this purpose
The final rule does provide is a carve out for existing noncompete agreements with senior executives. Those will remain in force after the effective date. For purposes of the final rule, senior executives are those making more than $151,164 annually who are in policy-making positions.
The FTC noted that employers have alternatives to noncompete agreements that allow them to protect themselves, including non-disclosure or confidentiality agreements, and trade secrets laws. Employers who are concerned with this new rule should work with legal counsel on implementing alternatives to protect their interests.
As a reminder, Nevada law (NRS 613.195) already prohibits noncompete agreements with hourly workers and places restrictions on the terms of noncompete agreements in all other cases.
NAE will continue to monitor developments regarding this final rule, including any legal challenges, and keep members updated to ensure they remain in compliance.
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Workplace compliance and HR administration
Nevada Association of Employers (NAE) has compiled a collection of commonly used HR forms, checklists, policies, and employer guides to help Nevada businesses manage workplace compliance and HR administration.
Whether you are looking for an employment application, employee file checklist, payroll deduction form, performance appraisal form, or FLSA exemption worksheet, NAE provides resources designed to support employers with day-to-day HR operations.
These tools help employers maintain consistent documentation practices and ensure workplace policies align with federal and Nevada employment regulations.
Employers who need additional guidance on HR compliance may also benefit from services such as HR Hotline support or professional HR audits, which help identify potential compliance gaps before they become legal issues.
Access HR Forms Through the Member Portal
NAE members can access these HR resources through the Member Portal (login required). The portal includes downloadable HR forms, customizable policies, and other templates that help employers manage employee documentation and HR procedures efficiently.
These resources are designed to work alongside other NAE compliance tools, including the HR Compliance Checklist and Employee Handbook Review services that help employers maintain legally compliant workplace policies.
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Need a Form or Resource Not Listed?
If you don’t see the HR resource you need, NAE’s HR professionals and employment law attorneys are available to help.
Members can request guidance or customized resources through services such as Legal Hotline or employment legal services, which provide expert advice on workplace compliance and HR documentation.
Contact Nevada Association of Employers to speak with our team about your HR needs.
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