FTC Issues Final Rule to Ban Non-Compete Clauses
On April 23, 2024, the Federal Trade Commission (“FTC”) issued a final rule that includes broad and sweeping bans on non-compete clauses throughout the United States with only very limited exceptions (the “Final Rule”). The FTC has announced the use of non-compete clauses in most circumstances will constitute an unfair and deceptive business practice giving rise to an array of civil penalties the FTC may seek in federal enforcement actions. The rule will go into effect 120 days after publication in the Federal Register. The Final Rule faces legal challenges in Court that may stay or delay its implementation.
NLRB Order Changes Rules on Severance Agreements
The NLRB recently issued a ruling that reinstated the strict traditional rule that employer-offered severance agreements cannot be conditioned on certain non-disparagement and confidentiality provisions.
FTC Takes Aim at Non-Compete Clauses
On January 5, 2023, the Federal Trade Commission published a proposed rule that would ban (and importantly, nullify existing) non-compete agreements with limited exceptions. The rule would go into effect 60-days after it becomes final. Employers would have 180-days after publication of the final rule to comply. Under the proposed rule, a “non-compete clause” includes […]
