In April 2024, we wrote about the Federal Trade Commission’s (FTC) issuance of a “Final Rule” banning employee non-compete clauses, scheduled to take effect on September 4, 2024. Over the last few months, three federal courts have addressed whether a preliminary injunction should stay the rule’s effective date pending the conclusion of lawsuits
Two days ago, the Federal Trade Commission (FTC) issued its “Final Rule” banning non-compete clauses in employment. Until now, the FTC never officially declared that such clauses constituted an “unfair method of competition.” The Final Rule seeks to upend centuries of state law governing the use of non-compete clauses in employment, including state laws that