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ARTICLE · 29 APRIL 2024

FTC Adopts Final Ban On Worker Non-Competes

On April 23, 2024, the U.S. Federal Trade Commission promulgated a final Rule banning non-compete clauses in contracts with employees and other workers (the Rule).

United StatesEmployment and HR

On April 23, 2024, the U.S. Federal Trade Commission promulgated a final Rule banning non-compete clauses in contracts with employees and other workers (the Rule). The final Rule is set to become effective 120 days after publication in the Federal Register, although enforcement may be delayed by significant legal challenges seeking to invalidate the Rule. If the Rule becomes effective, it will invalidate millions of existing non-compete clauses nationwide and impose a sweeping ban on new non-competes, however, employers will still have a variety of tools to protect their business interests when workers depart.

Employers should be aware of several key features of the Rule and the evolving non-compete legal landscape:

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