As reported in prior Alerts (on January 6, 2023; April 19 and 23, 2024; and July 3 and 24, 2024), after initially proposing the rule in January 2023, in April 2024 the Federal Trade Commission (FTC) voted 3-2 to approve a final rule:
- Banning noncompete agreements with virtually all workers 120 days after publication in the Federal Register (i.e., on September 4, 2024);
- Invalidating existing noncompetes with all workers except senior executives; and
- Requiring employers to send a clear and conspicuous notice to affected workers, by the effective date, that the worker’s noncompete clause will not and cannot be legally enforced.
Legal challenges to the noncompete ban have, thus far, been unsuccessful in securing an order enjoining, staying and/or invalidating the noncompete ban for all employers.
Read the full Alert on the Duane Morris LLP website.