FTC Announces Rule Banning Noncompetes

On April 23, 2024, the Federal Trade Commission issued a final rule banning noncompetes nationwide. The rule preempts conflicting state laws and goes into effect 120 days after publication in the Federal Register. Non-compete agreements related to the sale of a business remain enforceable. Certain noncompetes involving executives remain valid. For the most part, however, employers will be prohibited from restricting their employees’ ability to earn a living in the same field post-separation. A copy of the rule may be found here Non-Compete Clause Final Rule (ftc.gov)