Submitted on Wed, 04/24/2024 - 14:41

On April 23, the FTC issued a final rule banning employers from using non-compete clauses with workers.  

Following are some main points of this new rule.

  • Employers are banned from entering into or attempting to enforce any new non-competes.
  • Existing non-competes for senior executives making more than $151,164 yearly and who are in policy making positions are enforceable.
  • The final rule will become effective 120 days after publication in the Federal Register (exact date still to be determined).

No immediate action is needed since the rule does not take effect for several months, but we recommend that you review your current employment agreements to determine which, if any, will be impacted by the new ruling. Continue to monitor the situation. There will likely be legal opposition that might impact the timing and implementation of the ruling.

APTA Private Practice will continue to monitor this and will provide you with updates and recommendations as new information emerges.