[ACC Note: On August 20, 2024, the U.S. District Court for the Northern District of Texas issued a nationwide permanent injunction barring enforcement of the FTC's Noncompete Rule. The FTC will likely appeal this decision to the U.S. Court of Appeals for the Fifth Circuit.]
Overview of the Federal Trade Commission's May 7, 2024 final rule banning most noncompete agreements in the United States, including options that employers should consider if the rule is not stayed by the federal courts prior to its effective date in September 2024.
Questions addressed in this overview include:
- What does the FTC rule do?
- What does it mean to “function to prevent a worker from seeking or accepting employment”?
- What about forfeiture provisions and clawbacks based on noncompetes?
- How does the rule affect trade secret protection?
- Does the FTC possess the power to ban noncompetes?
- What should employers do now?
This resource was originally published on the website of Ogletree Deakins on May 24, 2024.
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