An Employer's Practical Guide To The FTC's Non-Compete Rule

This article is the latest in a series from McDonald Hopkins' Trade Secret, Non-Compete, and Unfair Competition team covering the FTC's decision to impose a national prohibition on all existing non-competition agreements, subject to minor exceptions.

The Federal Trade Commission's (FTC) Non-Compete Rule (Rule), announced April 23, 2024, has left employers uncertain of what to expect in the coming days, weeks, and months. If the Rule goes into effect, all existing non-compete agreements with workers will be immediately invalidated, with the exception of those with senior executives. (Click here for insight on the definition of terms such as "workers" and "senior executives" under the Rule.) After the Rule goes into effect, no new non-compete agreements will be permitted, with few exceptions.