ARTICLE · 01 MAY 2024

New Rules Governing Non-Competes And Overtime Compensation

Venable LLP

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Federal agencies have been busy bees this spring, releasing multiple rules that will have a serious impact on employers' labor and employment practices.

United StatesEmployment and HR

Allison B. Gotfried

Hayley F. Degnan

Federal agencies have been busy bees this spring, releasing multiple rules that will have a serious impact on employers' labor and employment practices. This alert provides a high-level summary of some major updates from the Federal Trade Commission (FTC) and the Department of Labor (DOL) this month.

The Federal Trade Commission Bans Non-Competes

In a move over a year in the making, the FTC voted on April 23, 2024 to issue its Final Rule banning most non-competes. As we wrote here, the FTC drew from its authority under the Federal Trade Commission Act to take aim at "unfair methods of competition." The Final Rule does so by instituting serious restrictions on the use of non-compete provisions for most employees, including workers (i.e., employees, contractors, interns, volunteers, and more) and senior executives alike (together, referred to herein as Covered Persons).

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