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The Federal Trade Commission Non-Compete Rule Will Not Take Effect on September 4, 2024
English Lucas Priest and Owsley, LLP
BREAKING NEWS – The Federal Trade Commission Non-Compete Rule Will Not Take Effect on September 4, 2024
As many employers are aware, the US Federal Trade Commission (FTC) adopted a rule earlier this year that would have essentially banned most non-compete agreements for employees and independent contractors. The Rule was scheduled to take effect on September 4, 2024. If it had taken effect, it would have prohibited employers from entering into new non-competes after that date and from enforcing most existing non-competes. The Rule also would have required employers to notify workers that their non-competes were no longer enforceable.
Several lawsuits were immediately filed to challenge the FTC’s authority to adopt the Rule. As the effective date drew near, there has been much uncertainty as employers have wondered whether the Rule would take effect and what they should do to prepare for it.
However, a federal district court issued a decision two days ago that set aside the Rule in its entirety and ordered that the Rule would not take effect. The decision may be appealed, so this is not the last word. But for now, there is no change to the existing law governing non-competes.
For more information or to receive help with non-compete issues, call English, Lucas, Priest & Owsley, LLP at 270.781.6500.
You can read the full decision on the Rule here.
