FTC Announces Rule Banning Most Noncompete Agreements

April 24, 2024

On April 23, 2024, the Federal Trade Commission issued a final rule banning noncompete agreements nationwide.

The rule preempts conflicting state laws and goes into effect 120 days after publication in the Federal Register. Non-compete agreements related to the sale of a business remain enforceable. Certain noncompete agreements involving executives remain valid. For the most part, however, employers will be prohibited from restricting their employees’ ability to earn a living in the same field post-separation.

A copy of the rule may be found here Non-Compete Clause Final Rule (ftc.gov)

If you have questions or concerns about how this rule may effect your business give myself, or any member of our Labor and Employment group, a call today.

Kevin Burke counsels employers on recent developments in employment law, and the implementation of policies and procedures which enable employers to be in compliance with federal and state laws. He can be reached at 716-854-4300 ext. 292 or [email protected]