Non-Compete Clause Rule; Trade Regulation Rule on Non-Compete Clauses
Summary
This notice announces the FTC's final non-compete clause rule, which would prohibit employers from entering into or enforcing non-compete agreements with most workers. The notice also addresses the multiple legal challenges filed against the rule and the preliminary injunctions that have been issued by federal courts, effectively blocking the rule from taking effect nationwide.
Key Points
- 1Would ban most new non-compete agreements between employers and workers nationwide
- 2Existing non-compete agreements for senior executives would remain enforceable
- 3Existing non-competes for all other workers would become unenforceable after the effective date
- 4Multiple federal courts have issued orders blocking the rule from taking effect
- 5The FTC estimates the rule would affect approximately 30 million American workers
Impact Assessment
If you are a worker, this means you would have greater freedom to change jobs or start competing businesses after leaving your employer, though the rule's enforcement is currently blocked by court injunctions.
National
Significant
Key Dates
May 7, 2024
Regulatory Connections
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.