is application letter and cover letter the same

Application Letter Vs. Cover Letter

• Cover Letters
• ')" data-event="social share" data-info="Pinterest" aria-label="Share on Pinterest">
• ')" data-event="social share" data-info="Reddit" aria-label="Share on Reddit">
• ')" data-event="social share" data-info="Flipboard" aria-label="Share on Flipboard">

Cover Letter Analysis

How to get a mechanical engineering technician certificate, strengths & weaknesses of the curriculum vitae format.

• How to Write a Resume While You Are Currently Working
• Education Requirements for a Mechanical Engineer

There are subtle differences between application letters and cover letters. However, the terms cover and application are sometimes used interchangeably. An application letter is often intended to stand on its own, whereas a cover letter generally can't be the applicant's only document submitted to express interest in a job opening.

Cover Letter Versus Application Letter Introductions

Cover letters typically contain a brief introduction. The introduction in a cover letter consists of three to four sentences about the job seeker's work experiences, education, accomplishments and the type of organizations he feels are best suited for his qualifications. On the other hand, an application letter might contain a more extensive introduction simply because this letter serves a purpose that's similar to the resume.

Dear (Hiring Executive),

Please accept my enclosed application for the position of executive assistant to your Vice President of Operations. I'm pleased to say that my qualifications match your job requirements perfectly. In my current role with Genex Engineering, I handle all of the same duties and much more as executive assistant to the president and CEO for the past four years. My experience, education (bachelor's degree), strong communication skills and ability to manage complex tasks and solve problems makes me an ideal candidate for your position.

Cover Letter Versus Application Letter Work History

An application letter generally contains a brief description of the job seeker's work history or professional experience. An application letter often can substitute for a resume and, therefore, requires that the job seeker include specific information about her work history and professional competencies. A cover letter shouldn't contain too much information about the job seeker's work history because it's merely an introduction to the resume. It's acceptable for a cover letter to reference the job seeker's work history in a sentence or two about her current or previous employer; however, it shouldn't contain details about any professional experience.

Example of Cover Letter Work History:

Prior to working at Genex Engineering, I was executive secretary to the COO at Boomer Industrial Hose Inc. and started my career as a receptionist/ secretary for the Sales Manager at Geny Oil Corp. 10 years ago in Texas.

No need to add more to your work history in a cover letter as it is thoroughly covered in the accompanying resume.

Example of Application Letter Work History:

At Genex Engineering, I handle all of the duties required of your position and much more as executive assistant to the president and CEO for the past four years. In addition to providing secretarial and administrative support to the president, I train other secretaries to support other high-level executives and regularly speak at conventions and manage trade shows. My responsibilities also include creating presentations and proposals, arranging travel for all the executives, generating reports and taking responsibility for confidential company documents. I spearheaded modifications in IT that generated increased profitability for Genex and implemented a variety of upgrades in our accounting procedures dramatically cutting costs in that department.

After describing your duties in your present position, you would then briefly describe your duties in your two previous junior-intermediate level jobs at Boomer and Geny Oil.

Cover Letter Versus Application Letter Content

A cover letter is a teaser. Its intent is to capture the reader's attention enough to make the recruiter or hiring manager want to review the resume. The cover letter should contain just enough information that it doesn't give away everything about the applicant. An application letter, on the other hand, is a more comprehensive document. It describes the applicant's educational background, certifications and licenses, and in some cases, salary history for job postings that require it.

When to Use an Application Letter

When an employer specifically requires a cover letter and resume, that's what the job seeker should submit. It's relatively rare that an employer will accept an application letter in lieu of a cover letter and resume. The two approaches are different and employers use application letters infrequently when compared to how they use cover letters and resumes. An application letter is more appropriate for unsolicited interest, or when there isn't a job posting. For example, an application letter could be mailed to several employers that aren't advertising specific jobs vacancies as a way to provide a more extensive introduction to prospective employers.

Uses of Cover Letters and Application Letters

A cover letter is almost always used to express interest in employment. An application letter can be used for employment purposes; however, it can also be used for applying for a place in an academic program or an internship program. Employers don't always require a cover letter, but it's always a good idea to use a cover letter. On the other hand, an application letter might be the only requirement sought by schools or employers – with an application letter, it may not always be necessary to include a resume.

Ruth Mayhew has been writing since the mid-1980s, and she has been an HR subject matter expert since 1995. Her work appears in "The Multi-Generational Workforce in the Health Care Industry," and she has been cited in numerous publications, including journals and textbooks that focus on human resources management practices. She holds a Master of Arts in sociology from the University of Missouri-Kansas City. Ruth resides in the nation's capital, Washington, D.C.

Related Articles

Do previous jobs on a resume have to be chronological, checklist for ranking received applications for employment, listing professional competencies, career objectives for engineers, how to creatively add your strengths to cover letters & resumes, how to write a first-class cover letter, what do you put on a resume when management is why you left, curriculum vitae for the pharmaceutical industry, resume cover letter guidelines, most popular.

• 1 Do Previous Jobs on a Resume Have to Be Chronological?
• 2 Checklist for Ranking Received Applications for Employment
• 3 Listing Professional Competencies
• 4 Career Objectives for Engineers

Are Cover Letter and Application Letter the Same?

While cover and application letters are usually used in the same contexts, every job seeker has to know the significant differences between these two documents.

Nowadays, application and cover letters are sent via email, so, it’s also important to familiarize oneself with the writing trends and standards of online documents.

So, What’s the Difference?

The main difference between applications and cover letters are:

• Application documents are considered to contain in-depth information about candidate skills and qualities while cover letters are merely used for submitting the documents.
• Cover letters carry out simpler functions and only define your professional capacity as a sender, a recipient, and the purpose of the letter. Application letters perform three main functions: to draw the attention of the potential recruiter, to reflect you as the perfect fit for the position, and to secure the interview.
• Application letters highlight qualifications, skills, strengths, and previous jobs to which this information should relate to the job applied. Done properly, it will showcase you as a good fit for the position. A cover letter can omit specific details, though it must include contact information and motivate why you’re applying for the position and why you’re good for it.
• Cover letters are shorter as they don’t include detailed information. Applicant documents shouldn’t exceed one page. In terms of improving career opportunities, wherever possible your letter should consist of three paragraphs in which you introduce yourself and your objective in the first paragraph. You should present your strengths in the second paragraph and propose an interview in the third paragraph.
• Cover letters aren’t considered the decisive element of an application package. Application letters usually accompany resumes in most cases, as they can offer more about your professional candidacy. Or you can always check some of the best companies that will help you with writing your cover letter on Linkedin .

What is the difference between application letter and cover letter? FREE TEMPLATE

General | 11 sep 2023.

In the competitive job market of today, job seekers are constantly on the lookout for ways to stand out and make a positive impression on prospective employers. Two essential tools in the job hunting arsenal are the application letter and the cover letter. While these terms are often used interchangeably, they serve distinct purposes in the hiring process. In this comprehensive guide, we will explore the key differences between application letters and cover letters, and provide step-by-step instructions on how to create both effectively.

What is an Application Letter?

An application letter, also known as a job application letter or a letter of application, is a formal document submitted by a job seeker to express their interest in a specific job vacancy. The primary purpose of an application letter is to introduce the applicant and their qualifications to the potential employer. Unlike a resume or CV, which provides a comprehensive overview of one's professional history, an application letter is tailored to a particular job opening.

Also read How to Create a Comprehensive Resume

How to Create an Application Letter

1. research the job opening.

Before you begin crafting your application letter, it's crucial to thoroughly research the job opening. This includes understanding the job requirements, responsibilities, and the company's culture. The more you know about the position, the better you can align your qualifications and skills with the employer's needs.

2. Format and Structure

An application letter should follow a standard business letter format. Here's a basic structure to follow:

Heading: Include your contact information (name, address, phone number, and email) at the top, followed by the date.

Recipient's Information: Below the date, include the recipient's name, title, company name, and address. If you can't find this information in the job posting, address the letter to the hiring manager.

Salutation: Start your letter with a professional salutation, such as "Dear Mr. Smith" or "Dear Hiring Manager."

Introduction: Begin with a strong opening paragraph that mentions the specific job you're applying for and how you learned about it. Express your enthusiasm for the position.

Body Paragraph(s): Use one or more paragraphs to highlight your qualifications, skills, and relevant experiences. Be specific and provide examples of how your background aligns with the job requirements.

Closing Paragraph: Summarize your interest in the position and express your desire for an interview. Mention that you have attached your resume for reference.

Closing : Use a formal closing such as "Sincerely" or "Yours faithfully," followed by your signature and typed name.

3. Tailor Your Letter

Each application letter should be customized for the specific job you're applying for. Highlight the qualifications and experiences that make you an ideal candidate for that particular position. Avoid using a generic, one-size-fits-all letter.

4. Showcase Your Skills

Use the application letter to showcase your skills and experiences that are most relevant to the job. Highlight achievements, projects, or experiences that demonstrate your capability to excel in the role.

Also read  7 Interview Tips to Impress Hiring Manager

5. Proofread and Edit

Before sending your application letter, carefully proofread it for grammar, spelling, and formatting errors. A well-written, error-free letter demonstrates professionalism and attention to detail.

6. Enclose Required Documents

If the job posting specifies additional documents, such as transcripts, certifications, or writing samples, make sure to include them along with your application letter.

When to Use an Application Letter

Application letters are typically used when:

A job vacancy is advertised.

The employer specifically requests an application letter.

You want to provide a more personalized introduction to your resume.

Effective Application Letter Example:

[Your Name]

[Your Address]

[City, State ZIP Code]

[Your Email Address]

[Your Phone Number]

[Today's Date]

[Recipient's Name]

[Recipient's Title]

[Company Name]

[Company Address]

Dear [Recipient's Name],

I am writing to apply for the [Position Name] at [Company Name], as advertised on [Where You Found the Job Posting]. With my strong background in [Relevant Skill/Experience], I am excited about the opportunity to contribute my expertise to your team.

In my current role at [Current Company], I have consistently demonstrated my proficiency in [Relevant Skill]. For instance, [Provide an Example of an Achievement or Project Relevant to the Position]. These experiences have honed my abilities and prepared me for the challenges and responsibilities of the [Position Name] role at [Company Name].

What sets [Company Name] apart for me is its reputation for [Company Attribute or Project]. I am deeply impressed by the impact your organization has made in [Industry or Field], and I am eager to be part of such an innovative and forward-thinking team.

Please find my resume attached, which offers a more comprehensive overview of my qualifications. I am enthusiastic about the opportunity to discuss how my skills can contribute to the continued success of [Company Name].

I can be reached at [Your Email Address] or [Your Phone Number]. Thank you for considering my application. I look forward to the possibility of becoming a part of the [Company Name] family and working toward achieving its goals.

What is a Cover Letter?

A cover letter, sometimes referred to as a covering letter, is a document that accompanies your resume when applying for a job. Unlike an application letter, which is typically focused on a specific job vacancy, a cover letter is more general and can be used for various job applications. The primary purpose of a cover letter is to introduce yourself, highlight your qualifications, and explain why you are an excellent fit for the company as a whole.

How to Create a Cover Letter

1. research the company.

Before you start writing your cover letter, research the company you're applying to. Understand its values, mission, culture, and recent achievements. This knowledge will help you tailor your cover letter to align with the company's goals and values.

A well-structured cover letter should include the following elements:

Heading : Similar to an application letter, include your contact information and the date at the top.

Recipient's Information : Address the letter to the hiring manager or the appropriate person if their name is mentioned in the job posting. If not, use a generic salutation like "Dear Hiring Manager."

Introduction : Begin with a strong opening that mentions the position you're interested in and how you found out about it. Express your enthusiasm for the company and explain why you're a good fit.

Body Paragraphs : Use one or more paragraphs to showcase your qualifications, skills, and experiences. Emphasize your contributions and achievements in previous roles. Highlight how your skills align with the company's needs.

Closing Paragraph: Summarize your interest in the company and reiterate your enthusiasm for the position. Express your desire for an interview to further discuss your qualifications.

Closing : Use a professional closing, such as "Sincerely" or "Best regards," followed by your signature and typed name.

3. Personalize Your Cover Letter

While a cover letter can be more general than an application letter, it should still be personalized for the specific company and position. Tailor your content to match the company's values and show how you can contribute to its success.

4. Highlight Transferable Skills

In a cover letter, focus on transferable skills that are applicable across various roles and industries. Explain how your diverse skill set makes you adaptable and a valuable asset to the company.

5. Match Your Resume

Your cover letter should complement your resume, not duplicate it. Use the cover letter to provide context for your resume and highlight specific achievements or experiences that are relevant to the job.

6. Proofread and Edit

Just like with an application letter, proofread and edit your cover letter carefully to ensure it is error-free and well-written. Attention to detail is crucial.

When to Use a Cover Letter

Cover letters are typically used when:

You are applying for a job without a specific job posting.

The job application process requires a cover letter.

You want to express your interest in a company and its culture, beyond a specific job opening.

Apply to urgently hiring jobs here!

Effective cover letter example.

I am writing to express my strong interest in the [Position Name] position at [Company Name], as advertised on [Where You Found the Job Posting]. With a proven track record in [Relevant Skill/Experience], I am confident that my qualifications align perfectly with the requirements of this role.

In my previous role at [Previous Company], I [Briefly Describe an Achievement or Responsibility Relevant to the Position]. This experience allowed me to hone my [Relevant Skill] skills and contribute to the growth and success of my team. I am eager to bring this expertise to [Company Name] to contribute to its continued excellence.

One of the aspects of [Company Name] that particularly excites me is [Specific Company Attribute or Project]. Your commitment to [Company's Values or Mission] aligns perfectly with my own professional values, making [Company Name] a natural fit for my career goals.

Enclosed is my resume, which provides further details about my qualifications. I would welcome the opportunity to discuss how my skills and experiences can benefit [Company Name] in greater detail. Please find my contact information below:

Thank you for considering my application. I look forward to the possibility of joining the team at [Company Name] and contributing to your ongoing success.

In conclusion, application letters and cover letters serve distinct purposes in the job application process. An application letter is tailored to a specific job vacancy and focuses on your qualifications for that role, while a cover letter is more general and introduces you to the company as a whole. Both letters, however, are essential tools for showcasing your skills and enthusiasm to prospective employers.

To succeed in your job search, it's crucial to create both types of letters effectively. Research the job opening or company thoroughly, follow the appropriate format and structure, and customize the content to match the employer's needs. Additionally, always proofread and edit your letters to ensure they make a positive impression. Application letter example and cover letter example illustrate how to structure both a cover letter and an application letter effectively, emphasizing the importance of tailoring the content to the specific job and company while showcasing your qualifications and enthusiasm.

By understanding the differences between application letters and cover letters and mastering the art of creating them, you can increase your chances of landing your dream job in today's competitive job market.

Related Insights

Top 10 Reasons Why You Should Consider a Job with a Joining Bonus in the Philippines

31 Oct 2023

Expanding Your Reach: How Jobyoda is Changing How You Source Talent

27 Apr 2023

Behavioral interviews and situational questions

09 Jan 2024

Enter Your Details Below to

Claim Your Venti Coffee Gift Voucher

Enter your details, which company did you get hired at, successfully submitted.

We will validate your hiring details with our partners and process your voucher shortly

Location Blocked

JobYoDA requires access to location. To enjoy all that JobYoDA has to offer, turn on your GPS and give JobYoDA access to your location.

• Resume Writing
• Resume Examples
• Cover Letter
• Remote Work
• Famous Resumes
• Try Kickresume

Motivation Letter vs Cover Letter: What Are the Key Differences? (+Examples)

• Klara Cervenanska , 
• Updated May 10, 2023 4 min read

If you've ever found yourself scratching your head and wondering about the difference between a motivation letter vs. cover letter, you're not alone. 

These two documents, while similar, have distinct uses and contexts that set them apart. 

In a nutshell, the main difference between cover letter and a motivational letter lies in the fact that a cover letter is typically used in career settings , while a motivation letter is more common in academic settings .

In this article, we'll dive into the specifics of each document and provide examples to help guide you on when to use which.

Table of Contents

Click on a section to skip

Motivation letter vs. cover letter 

What is a cover letter, how to write a cover letter, cover letter example, what is a motivation letter, how to write a motivation letter, motivation letter example, motivation letter vs. cover letter our final piece of advice.

What's the difference between a cover letter and a motivation letter?

Let's sum it up:

Now, let's have a closer look at each of these documents, together with an example of both a cover letter and a motivation letter.

Need a cover letter but hate writing it?

Discover Kickresume's AI Writer and instantly generate ready-to-use cover letters.

A cover letter is a document that serves as your introduction to a potential employer, showcasing your background and explaining why you would be a good fit for the position they're offering. 

It should accompany your resume and should complement the information in it.

In essence, it's your chance to present yourself, let your personality shine through, and provide additional details that might not fit within the limited space of your resume. 

Even if you lack previous experience in the field, a well-crafted cover letter can help you stand out by highlighting your enthusiasm and positive qualities. 

When it comes to writing a cover letter, the structure is just as important as the content. Here's a simple breakdown of the key components to include:

• Opening paragraph : Start with a brief introduction, saying who you are and the position you're applying for. This is your opportunity to grab the reader's attention and encourage them to read on.
• Body paragraphs: Use this section to showcase your relevant skills, experiences, and achievements. Be sure to provide concrete examples and explain how they directly relate to the job you're applying for. This is your chance to demonstrate why you're the ideal candidate for the position and how your background aligns with the company's needs and values.
• Closing paragraphs : In your closing paragraphs, restate your interest in the position and summarize your qualifications. This is also an excellent opportunity to express your enthusiasm and eagerness to contribute to the company's success. Don't forget to thank the reader for considering your application and provide any necessary contact information.

Now that you have a better understanding of what a cover letter entails and how to write one, let's take a look at an example to help illustrate the key concepts.

Marketing and Brand Manager Cover Letter Sample

This cover letter sample was provided by a real person who got hired with Kickresume’s help.

While cover letters are designed for job applications, motivation letters serve a different purpose. 

Motivation letter is typically used when applying for academic opportunities such as scholarships, internships, or postgraduate programs, but also when applying for a non-profit organization or voluntary work.

A motivation letter aims to convey your passion for the subject, your personal goals , and how the program or opportunity aligns with those aspirations. 

It's an opportunity to showcase your drive, commitment, and enthusiasm for the field, setting you apart from other applicants. 

When crafting a motivation letter, it's essential to convey your genuine interest in the program or opportunity and provide a clear explanation of your motivations. 

Here's a simple outline to follow:

• Opening paragraph: Begin with an introduction, stating who you are and expressing your interest in the program or opportunity. This is the perfect chance to capture the reader's curiosity and set the tone for the rest of the letter.
• Body paragraphs: In this section, delve into your motivation for pursuing this opportunity, your long-term goals, and how the program aligns with those objectives. Be specific and provide examples, such as relevant experiences or accomplishments, that demonstrate your commitment to the field.
• Closing paragraphs: Wrap up your motivation letter by reiterating your interest in the program or opportunity and expressing your enthusiasm for the potential it offers. Thank the reader for considering your application and provide your contact information.

Now that we've covered the purpose and structure of a motivation letter, let's take a look at an example to help bring these concepts to life. 

This sample motivation letter will demonstrate how to effectively introduce yourself, share your motivations and goals, and express your enthusiasm for the academic opportunity:

University Motivation Letter Example

Throughout this article, we've explored the key differences between motivation letters and cover letters.

In a nutshell, a cover letter focuses on your qualifications and suitability for a specific job, while a motivation letter expresses your enthusiasm and reasons for pursuing a particular opportunity, often in educational or volunteering contexts.

Furthermore:

• Cover letter typically includes your contact information, addresses the hiring manager, and is tailored to a specific job posting or company.
• Motivation letter is more general, often used for educational or volunteer programs, and emphasizes your passion, personal goals, and reasons for choosing the opportunity.

By understanding these distinctions, you can confidently craft the right document for your specific needs, be it an academic opportunity or a job application.

Klara graduated from the University of St Andrews in Scotland. After having written resumes for many of her fellow students, she began writing full-time for Kickresume. Klara is our go-to person for all things related to student or 'no experience resumes'. At the same time, she has written some of the most popular resume advice articles on this blog. Her pieces were featured in multiple CNBC articles. When she's not writing, you'll probably find her chasing dogs or people-watching while sipping on a cup of coffee.

Related Posts

13 terrible cover letter phrases and how you can fix them, the cover letter is dead — who killed it (a murder mystery case), share this article, join our newsletter.

Every month, we’ll send you resume advice, job search tips, career hacks and more in pithy, bite-sized chunks. Sounds good?

Difference between an application letter and a cover letter

• Career Advice

• Posted On: 2022-03-25
• Posted By: Admin

Contact Info

• Mon to Sun : 24/7 UK +
• Do You Have a Question? [email protected]

Quick Links

• Download Apps
• Order a Resume
• Cover Letter
• Word Template

Our Company

• Privacy Policy
• Terms & Conditions
• Affiliate Program
• Sponsorship Program

Copyright 2024 My Cv Creator . All rights reserved

The Difference Between a Cover Letter and a Letter of Interest

According to Zety , a service that creates professional communication templates, you use a cover letter to accompany your resume when you’re applying to a specific job, and use a letter of interest to put yourself forward for a job that isn’t advertised. Essentially, you’re pitching yourself to a company of interest, telling them your qualifications, and hoping they’ll identify a spot for you instead of waiting around for them to post an opening that aligns with your skills and experience.

Letters of interest are also helpful when someone has tipped you off to an opening that hasn’t yet been made public, according to Indeed . The goal is to introduce yourself to hiring managers and get your talents on their radar, even if it means they only keep you in mind for future opportunities.

A cover letter is reserved for when a specific job is available, so it might get you more immediate results. A letter of interest, on the other hand, could take months for results—but will help those in charge of hiring find a job that’s just right for you, should one become available.

What to include in a letter of interest

Your letter of interest should be full of background information highlighting why you’d be a great fit for the company. Unlike with cover letters, you won’t have a clear job posting or description of what the company wants right now, so you should first research the organization and identify what they do well, what they could use help with, and how your specific talents fit in somewhere. During your research, be sure to identify the most likely hiring manager, recruiter, or the manager of the team you want to be on, and address the letter to them.

Introduce yourself briefly by sharing your name and a one- or two-sentence description of your background. Then explain why you’re writing to that specific company. Share specific things about the organization that appeal to you, and then explain how you fit into what you described, sharing your experience, skills, training, and interests. If your research turned up anything about the company culture, describe how you’ll fit in and what benefits you’ll add. Finally, end your letter with a request for an informal interview. Having a chat with the hiring managers or recruiters will help them get to know you and better ensure you stick in their memory in case a job opens up in the future.

Like a cover letter, it shouldn’t exceed one page and should include your contact details. Also like a cover letter, you should try to make it as specific to the company as possible and not use a boilerplate template. In fact, in this instance, you should be even more specific about your interest in the company. Make sure you point out the details about the organization that interest and excite you, so they know you did your research.

Sign up for Lifehacker's Newsletter. For the latest news, Facebook , Twitter and Instagram .

Click here to read the full article.

An official website of the United States government

Here’s how you know

The .gov means it’s official. Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.

The site is secure. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Take action

• Report an antitrust violation
• File adjudicative documents
• Find banned debt collectors
• View competition guidance
• Competition Matters Blog

New HSR thresholds and filing fees for 2024

View all Competition Matters Blog posts

We work to advance government policies that protect consumers and promote competition.

View Policy

Search or browse the Legal Library

Find legal resources and guidance to understand your business responsibilities and comply with the law.

Browse legal resources

• Find policy statements
• Submit a public comment

Vision and Priorities

Memo from Chair Lina M. Khan to commission staff and commissioners regarding the vision and priorities for the FTC.

Technology Blog

Consumer facing applications: a quote book from the tech summit on ai.

View all Technology Blog posts

Advice and Guidance

Learn more about your rights as a consumer and how to spot and avoid scams. Find the resources you need to understand how consumer protection law impacts your business.

• Report fraud
• Report identity theft
• Register for Do Not Call
• Sign up for consumer alerts
• Get Business Blog updates
• Get your free credit report
• Find refund cases
• Order bulk publications
• Consumer Advice
• Shopping and Donating
• Credit, Loans, and Debt
• Jobs and Making Money
• Unwanted Calls, Emails, and Texts
• Identity Theft and Online Security
• Business Guidance
• Advertising and Marketing
• Credit and Finance
• Privacy and Security
• By Industry
• For Small Businesses
• Browse Business Guidance Resources
• Business Blog

Servicemembers: Your tool for financial readiness

Visit militaryconsumer.gov

Get consumer protection basics, plain and simple

Visit consumer.gov

Learn how the FTC protects free enterprise and consumers

Visit Competition Counts

Looking for competition guidance?

• Competition Guidance

News and Events

Latest news, ftc finalizes changes to the health breach notification rule.

View News and Events

Upcoming Event

Older adults and fraud: what you need to know.

View more Events

Sign up for the latest news

Follow us on social media

-->   -->   -->   -->   -->  

Playing it Safe: Explore the FTC's Top Video Game Cases

Learn about the FTC's notable video game cases and what our agency is doing to keep the public safe.

Latest Data Visualization

FTC Refunds to Consumers

Explore refund statistics including where refunds were sent and the dollar amounts refunded with this visualization.

About the FTC

Our mission is protecting the public from deceptive or unfair business practices and from unfair methods of competition through law enforcement, advocacy, research, and education.

Learn more about the FTC

Meet the Chair

Lina M. Khan was sworn in as Chair of the Federal Trade Commission on June 15, 2021.

Chair Lina M. Khan

Looking for legal documents or records? Search the Legal Library instead.

• Cases and Proceedings
• Premerger Notification Program
• Merger Review
• Anticompetitive Practices
• Competition and Consumer Protection Guidance Documents
• Warning Letters
• Consumer Sentinel Network
• Criminal Liaison Unit
• FTC Refund Programs
• Notices of Penalty Offenses
• Advocacy and Research
• Advisory Opinions
• Cooperation Agreements
• Federal Register Notices
• Public Comments
• Policy Statements
• International
• Office of Technology Blog
• Military Consumer
• Consumer.gov
• Bulk Publications
• Data and Visualizations
• Stay Connected
• Commissioners and Staff
• Bureaus and Offices
• Budget and Strategy
• Office of Inspector General
• Careers at the FTC

Fact Sheet on FTC’s Proposed Final Noncompete Rule

• Competition
• Office of Policy Planning
• Bureau of Competition

The following outline provides a high-level overview of the FTC’s proposed final rule :

• Specifically, the final rule provides that it is an unfair method of competition—and therefore a violation of Section 5 of the FTC Act—for employers to enter into noncompetes with workers 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 “senior executive” to refer to workers earning more than $151,164 annually who are in a “policy-making position.”
• Reduced health care costs: $74-$194 billion in reduced spending on physician services over the next decade.
• New business formation: 2.7% increase in the rate of new firm formation, resulting in over 8,500 additional new businesses created each year.
• This reflects an estimated increase of about 3,000 to 5,000 new patents in the first year noncompetes are banned, rising to about 30,000-53,000 in the tenth year.
• This represents an estimated increase of 11-19% annually over a ten-year period.
• The average worker’s earnings will rise an estimated extra $524 per year. 

The Federal Trade Commission develops policy initiatives on issues that affect competition, consumers, and the U.S. economy. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Follow the  FTC on social media , read  consumer alerts  and the  business blog , and  sign up to get the latest FTC news and alerts .

Press Release Reference

Contact information, media contact.

Victoria Graham Office of Public Affairs 415-848-5121