FTC Approves Non-Compete Rule

ECA News

ARTICLE
Date	ArticleType
5/8/2024 4:00:00 AM	Industry News
FTC Approves Non-Compete Rule

The Federal Trade Commission (FTC) adopted by a 3-2 vote a revised, final version of its Noncompete Rule, to take effect 120 days after publication in the Federal Register. Once it takes effect people can report information about a suspected violation of the rule to the FTC Bureau of Competition by emailing noncompete@ftc.gov. The final rule will: apply to all entities subject to FTC jurisdiction (most notably excepting most non-profits and most government agencies); ban all new noncompete contracts; apply to “workers,” broadly defined to include independent contractors, apprentices, volunteers, etc.; and require recission of existing noncompete agreements and includes prescribed notices to current and former employees of all “existing” noncompete contracts, provided that existing agreements with “senior executives” may remain in force, but new ones may not be imposed. Click here to read a more detailed summary from our colleagues at SWACCA