FTC Ban On Non-Compete Agreements

The Federal Trade Commission (FTC) issued the long-awaited Non-Compete Final Rule that prohibits all new non-compete agreements and renders all existing non-competes unenforceable, except in limited circumstances. These restrictions go into effect 120 days after the Rule's publication in the Federal Registrar. "Non-compete" is broadly defined as contract or policy that "prohibits" a worker from, "penalizes" a worker for, or "functions to prevent" a worker from, seeking or accepting work, after the conclusion of their employment or from operating a business after the conclusion of their employment. Workers include traditional W-2 employees, leased employees, and independent contractors.