Breaking: Noncompete Agreement Final Rule

FTC Ban on NonCompetes Set to Take Effect September 4: Steps Employers Should Take Now

The new federal rule prohibiting nearly all noncompete agreements nationwide, with very limited exceptions, is set to take effect on September 4, according to the FTC. Noncompete agreements have been under increasing scrutiny in recent years. While legal challenges could delay enforcement, employers should familiarize themselves with the rule now to avoid being unprepared when it is enforced.

Gain insight into the FTC's new federal rule prohibiting nearly all noncompete agreements nationwide, including coverage, impact on conflicting state laws, exceptions, employee applicability, next steps upon enforcement, and potential legal challenges:

• Consider what agreements this ban will cover, including formal noncompete agreements and other de facto agreements.
• Know how state laws that conflict with this rule are impacted by this rule.
• Learn about various employees who will be subject to the rule and the exceptions that apply under the rule.
• Discuss various next steps when the rule becomes effective, including giving notice to employees.
• Understand other legal challenges that may result from this rule, including any federal lawsuits.

You need to understand the FTC's final rule to begin to take steps to implement its requirements while considering how more competition might impact revenue and profit.