On April 23, 2024, the Federal Trade Commission (FTC) approved a new rule prohibiting employment related non-compete clauses. FTC Commissioners voted 3-2 along party lines to approve the new rule. The rule will be effective 120 days after publication in the Federal Register, and employees and employers should expect the rule to become effective on approximately September 1, 2024.
In a client alert sent by Chamber member Rudolph Friedmann LLP, Brian Lynch explores what is covered by the new rule, what is not covered, alternatives to non-compete clauses and the complaint the United States Chamber of Commerce has filed against the FTC.