Despite the FTC's Final Rule Banning most Employer-Employee Non-compete Clauses, it is not the death of all Non-Compete Clauses.
On May 7, 2024, the Federal Trade Commission ("FTC") published in the Federal Register its Final Rule purportedly banning employer-employee non-compete clauses. With a few exceptions, the FTC's ban effective September 4, 2024, prohibits a person from: (1) requiring workers to enter non-compete clauses; and (2) enforcing non-compete clauses against workers. The Final Rule applies broadly to "Workers" that are or were employees, independent contractors, or sole proprietorships, and includes interns, externs, and volunteers subject to a non-compete clause.
Richard Hathaway breaks down the FTC's Final Rule in his recent blog post - read the full version here.
