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ARTICLE · 19 AUGUST 2024

The FTC's Final Rule On Non-Compete Agreements To Take Effect?

Crowe & Dunlevy
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Since January of 2023, Crowe & Dunlevy has been tracking and updating its clients on the Federal Trade Commission's (FTC) rule to prohibit employers from imposing non-compete clauses on employees...

United StatesEmployment and HR
Logan Hibbs
Logan Hibbs
Allen L. Hutson
Allen L. Hutson
Chris Vaught
Chris Vaught
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Since January of 2023, Crowe & Dunlevy has been tracking and updating its clients on the Federal Trade Commission's (FTC) rule to prohibit employers from imposing non-compete clauses on employees (see previous Crowe & Dunlevy advisories circulated in January 2023, June 2023, and March 2024). Now, over a year and a half later, the rule is set to go into effect on September 4, 2024. As a result, any existing non-compete agreements an employer has entered with a current or former employee, except "senior executives" who are in a "policy-making position" and make more than $151,164 on an annual basis, will be unenforceable as of September 4, 2024.

What should you do and know in light of this sea change? Effective September 4, 2024, employers should:

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