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 noncompetes.
- Existing non-competes for senior executives making more than $151,164 yearly and who are in policy making positions are enforceable.
- The final rule is set to go into effect September 4, 2024.
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. Pending litigation could impact the timing or implementation of the ruling.
To learn more, view these resources from the FTC:
APTA Private Practice will continue to monitor this and will provide you with updates and recommendations as new information emerges.
