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ARTICLE · 30 APRIL 2024

FTC Votes To Ban Noncompete Clauses Nationwide

Greenberg Traurig
Greenberg Traurig
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The FTC's vote has no immediate effect. Existing restrictive covenants and noncompete clauses remain enforceable, and new noncompete agreements may be executed.

United StatesEmployment and HR
Go-To Guide:
  • The FTC's vote has no immediate effect. Existing restrictive covenants and noncompete clauses remain enforceable, and new noncompete agreements may be executed.
  • If the final rule takes effect (presently 120 days after publication in the Federal Register), legal challenges to the final rule will almost certainly result in significant delays to its implementation.
  • The final rule bans all noncompete clauses with all workers. It makes no exception for high-earning individuals or executives on a go-forward basis.
  • The final rule defines "noncompete clause" broadly to include a term of employment that functions to prevent a worker from seeking or accepting work in the United States after the employment concludes. It does not apply to restrictions during employment.

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