FTC Adopts Final Rule Banning Most Non-Competes

On April 23, 2024, the Federal Trade Commission (FTC) adopted a final rule that bans noncompete agreements with employees, independent contractors and other workers in the United States in most circumstances. The final rule differs, in several respects, from the FTC's January 2023 proposed rule.

Status of the Final Rule

Multiple lawsuits have already been filed challenging the final rule as unlawful, and many believe there is a good chance that the final rule will not survive those legal challenges. But pending a decision invalidating or staying the final rule, the rule will go into effect 120 days after publication in the Federal Register (the "effective date").

Content of the Final Rule