Practical Advice Regarding FTC’s Non-Compete Ban for Employers

 

Practical Advice Regarding FTC’s Non-Compete Ban for Employers
The National Law Review
by: Labor and Employment Practice Group of Bradley Arant Boult Cummings LLP
April 25, 2024

By now, everyone knows that the FTC issued a final rule that would ban all noncompete agreements entered into after the effective date.
Effective Date of FTC Ban
The FTC’s noncompete ban is not in effect yet. It does not become effective until 120 days after the date the final rule is published in the Federal Register. The Federal Register is expected to publish the final rule next week, likely making the effective date around the beginning of September 2024.

Existing Legal Challenges to Ban
The U.S. Chamber of Commerce has already filed a challenge to the noncompete ban (Chamber of Commerce of the United States of America v. Federal Trade Commission, Case No. 6:24-cv-00148 (E.D. Tex. filed April 24, 2024)). There has been another legal challenge filed as well. We don’t know whether these legal challenges will be successful, but we will provide updates when we know more.

Five Things To Do to Prepare
If the legal challenges are not successful and the rule goes into effect (again, approximately early September 2024), here are steps that employers can take to get ready:

1.    Review existing noncompete agreements to see if .....

CLICK HERE TO CONTINUE READING