May 07, 2024
FTC Publishes Final Rule Banning Nearly All Non-Competes
Today, the Federal Trade Commission published its final, “Non-Compete Clause Rule.” The final rule differs in a variety of ways from the proposed rule. One key difference is the effective date. The proposed rule provided an effective date that would be 180 days from the date the final rule was published in the Federal Register. It is not. The final rule is effective in 120 days – on September 4, 2024. Why the change?
The 161-preamble preceding the 4-page rule reads, “The Commission’s findings that the use of non-competes is exploitative and coercive for the vast majority of workers, and modifications in the final rule that reduce covered entities’ compliance burden, the Commission modifies the date that compliance with the final rule is required from 180 days to 120 days after publication in the Federal Register.” What else has changed from the proposed rule?
- Definition of a non-compete
- Carve out for existing agreements with “senior executives”
- Rescission requirement
- Methods of notice delivery, exceptions to it, sample, and options
- Sample notice
- Safe harbor and exceptions
- and more.
For more information join nearly 200 HR professionals, business owners, and managers already registered to attend the FREE webcast, May 8th from Noon – 1:15 p.m. ET for a “Regulatory Roundup” as we review this and six (6) other recent developments.
