Non-Compete Clauses Updates

​Non-Compete Clauses Updates
 
On April 23rd, Federal Trade Commission(“FTC”) announced it has adopted a Final Rule that would ban almost all employee non-compete agreements in the United States. 
 
According to the FTC, non-compete agreements often impose contractual conditions that prevent employees from taking a new job or starting a new business. Employees with non-competes are often forced to either stay in a job they want to leave or bear other significant harms and costs, such as being forced to switch to a lower-paying field, relocate, leave the workforce altogether, or to defend against expensive litigation. The FTC’s final rule to ban non-competes will ensure employees have the freedom to pursue a new job, start a new business, or bring a new idea to market.
 
The new Rule is scheduled to go into effect the end of August 2024; however, challenges have already been files in regard to if the FTC has the authority to implement a ban on non-competes.  In the Rule, there are exceptions and notification requirements. 

More information can be found at: 
Fact Sheet on FTC’s Proposed Final Noncompete Rule | Federal Trade Commission