Law Alert
April 23, 2024
On April 23, 2024, the Federal Trade Commission (FTC) announced a final rule which bans almost all noncompete clauses nationwide. The final rule is scheduled to be published in the Federal Register on May 7 and will take effect 120 days after publication, on September 4, 2024.
The rule will ban all new noncompete clauses as of the rule’s effective date and will also make existing noncompete clauses void, except for those with senior executives that are in effect before September 5, 2024. Employers will be required to provide written notice to affected workers if they are subject to noncompete clauses that are no longer enforceable.
Additional information about the final rule (including the final rule itself), employee model notices, and FAQs can be found on the FTC’s Noncompete Rule page. If you have questions or concerns about noncompete agreements or policies, you should speak with an attorney.
