As you may have heard, the Federal Trade Commission (FTC) announced a Final Non-Compete Clause Rule on April 23rd, 2024, which bans post-employment non-compete clauses between employers and their workers. The FTC Non-Compete Ban goes into effect on September 4th, 2024. The new rule applies to non-competes for U.S. workers in most industries, including both employees and independent contractors, with limited carve-outs.

Each employer must give written notice to all covered workers bound to non-compete restrictions prior to September 4th, 2024. Violations of the new rule include penalties, fines, and other remedies.

Multiple lawsuits have been filed to challenge the new rule, and, based on recent Supreme Court decisions, there is a significant chance of the rule being held unconstitutional before it goes into effect. However, that is only two weeks away from now and the rule is the law of the land unless until it is ruled unconstitutional or otherwise invalidated.

If you have questions or concerns about how this impacts you, please contact us right away to schedule a call discuss.