FTC Non-Compete Ban: What You Need to Know | Seyfarth Shaw LLP

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On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule becomes effective 120 days after being published in the Federal Register (Effective Date).[1] As of the date of this paper, the Final Rule has not been published in the Federal Register. The Final Rule bans almost all non-competes between employers and workers, but does not explicitly ban non-disclosure agreements, customer non-solicitation agreements, or employee non-solicit agreements. Nevertheless, the Final Rule makes clear that it bans these other forms of restrictive covenants when they have the same functional effects as non-compete clauses.[12] The Final Rule provides that a non-disclosure clause operates as a non-compete, for example, “where they span such a large scope of information that they function to prevent workers from seeking or accepting other work or starting a business after they l

Legal Update Jun 11, 2024 FTC Non-Compete Ban: What You Need to Know Click to share this page Click for PDF Click to print this page On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule becomes effective 120 days after being published in the Federal Register (Effective Date). [1] The Final Rule was published in the Federal Register and the effective date is September 4, 2024. Table of Contents Key Provisions Analysis Frequently Asked Questions Key Provisions Scop

FTC Non-Compete Ban: What You Need to Know | Seyfarth Shaw LLP

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