FTC takes on Noncompetes
The U.S. Federal Trade Commission (FTC) recently approved a final rule banning most new noncompete clauses in employment contracts—a sweeping change affecting millions of workers. The rule also makes all existing noncompete agreements—except for those covering senior executives—unenforceable and requires employers to provide notice to current and former workers that their noncompete clauses are no longer in effect. The rule goes into effect 120 days following its publication in the Federal Register. Enforcement could be further delayed by anticipated legal challenges.
Here at PLDR Law, we will be monitoring the emerging implications of this new rule. If you have any questions as an employer or an employee, do not hesitate to reach out to one of our employment law team members.
