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Category: Labor and Employment Law

On April 23, 2024, the Federal Trade Commission (FTC) announced an administrative rule that would ban almost all non-competition agreements. The rule is scheduled to take effect in about four months (around August 2024). Within a couple days several businesses, including the U.S. Chamber of Commerce, filed lawsuits requesting that the rule be overturned. The courts may either reject the rule entirely, delay the effective date of the rule, or uphold the rule and permit it to take effect.
In early January 2023, the U.S. Federal Trade Commission announced a proposed rule that would bar employers from entering into non-competition agreements with employees and require employers to rescind any existing non-competition agreements. Many sources give the impression that the ban is in place or just around the corner. While this is certainly news worth following, we strongly encourage employers and employees to understand one critical thing: employee non-competition agreements are not dead yet.