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ARTICLE · 30 APRIL 2024

FTC Issues Final Rule Banning Non-Compete Clauses Nationwide

Foley Hoag LLP
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On April 23, 2024, the Federal Trade Commission ("FTC") issued its Final Rule prohibiting non-compete clauses in all agreements between employers and their workers.

United StatesEmployment and HR
Foley Hoag LLP
Foley Hoag LLP
Seth Reiner
Seth Reiner
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Key Takeaways:

  • The FTC's Final Rule bans all future non-competes beginning in approximately four months.
  • The Final Rule also voids existing non-compete provisions for all workers other than senior executives beginning in approximately four months.
  • Many legal challenges to the Final Rule are likely, which, at the very minimum, will significantly delay implementation of the rule.

On April 23, 2024, the Federal Trade Commission ("FTC") issued its Final Rule prohibiting non-compete clauses in all agreements between employers and their workers. This controversial ban comes one year and six months after the FTC's proposed rule on the same subject, and after a notice and comment period during which the FTC received over 26,000 public comments on the hotly contested new rule.

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