FTC Issues Rule Banning Non-Competes

As we reported in an alert last week, on April 23, 2024, the United States Federal Trade Commission (“FTC”) voted in favor of a Final Rule banning nearly all non-compete agreements, with limited exceptions related to the sale of a business and certain pre-existing agreements with senior executives.  The Final Rule provides that it is an unfair method of competition, and therefore a violation of the Federal Trade Commission Act (the “Act”) to enter into, attempt to enter into, enforce, or attempt to enforce non-compete clauses with a worker or represent that the worker is subject to a non-compete clause. “Worker” is defined broadly under the Final Rule to include current or former employees, independent contractors, externs, interns, volunteers, apprentices, or sole proprietors who provide a service to a person.  

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