News Details

FTC Final Rule Bans Noncompete Agreements

May 16, 2024

The FTC issued a rule broadly banning noncompete agreements, covering all individuals, including senior executives, with no exceptions for practice sales scenarios. New noncompete agreements are now prohibited, and existing agreements are only valid if the individual holds a senior executive position at the time of agreement initiation. The rule overrides New York law and will take effect in approximately 120 days after publication in the Federal Register (expected around August). 

Here is a link to the actual FTC final rule: