FAQs About The FTC Final Rule Banning Worker Noncompete Agreements

This week, the Federal Trade Commission ("FTC") voted 3-2 along party lines to finalize a rule that bans noncompete clauses in employment agreements as a per se illegal "unfair method of competition" ("UMC") under Section 5 of the FTC Act. The Chamber of Commerce and others already have filed lawsuits seeking to invalidate the rule, and those lawsuits could result in a stay of the rule as the cases proceed. In this White Paper, we summarize the ban and provide guidance for businesses about how to react to the uncertainty that the FTC's recent actions have created.

WHAT DOES THE FTC'S FINAL NONCOMPETE RULE SAY?

• The final rule creates a comprehensive ban on new postemployment noncompetes with virtually all workers (defined broadly), including senior executives, regardless of wage or skill level