{"id":5577,"date":"2024-04-26T10:19:57","date_gmt":"2024-04-26T14:19:57","guid":{"rendered":"https:\/\/www.lindabury.com\/firm\/?p=5577"},"modified":"2025-02-05T09:24:28","modified_gmt":"2025-02-05T14:24:28","slug":"ftc-issues-final-rule-banning-non-compete-agreements-in-the-u-s","status":"publish","type":"post","link":"https:\/\/www.lindabury.com\/firm\/insights\/ftc-issues-final-rule-banning-non-compete-agreements-in-the-u-s.html","title":{"rendered":"FTC Issues Final Rule Banning Non-Compete Agreements in the U.S."},"content":{"rendered":"<p>On April 23rd, 2024, the Federal Trade Commission (FTC) approved a final rule that effectively bans the use of non-compete agreements by U.S. based employers.\u00a0 The final rule is substantially similar to the proposed rule announced in January 2023, and represents a sweeping change in the ability of employers to rely upon preexisting as well as future non-compete clauses to protect against unfair competitive practices.\u00a0 The final rule will go into effect 120 days after its publication in the Federal Register, which is expected shortly.<\/p>\n<p>The final rule defines a non-compete clause as any agreement that prohibits, penalizes or <em>functions to prevent<\/em> a worker from (1) seeking or accepting work in the U.S. with another employer or (2) operating a business in the U.S., after a separation of employment.<\/p>\n<p><strong>The Scope of the FTC Ban<\/strong><\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.lindabury.com\/firm\/insights\/ftc-issues-final-rule-banning-non-compete-agreements-in-the-u-s.html\"  title=\"Continue Reading FTC Issues Final Rule Banning Non-Compete Agreements in the U.S.\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>On April 23rd, 2024, the Federal Trade Commission (FTC) approved a final rule that effectively bans the use of non-compete agreements by U.S. based employers.\u00a0 The final rule is substantially similar to the proposed rule announced in January 2023, and represents a sweeping change in the ability of employers to rely upon preexisting as well [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[65,247],"tags":[],"coauthors":[139],"class_list":["post-5577","post","type-post","status-publish","format-standard","hentry","category-insights","category-labor-employment-insights"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FTC Issues Final Rule Banning Non-Compete Agreements in the U.S. &#8212; April 26, 2024 &#8212; Lindabury, McCormick, Estabrook &amp; Cooper, P.C. Firm News &amp; Events<\/title>\n<meta name=\"description\" content=\"On April 23rd, 2024, the Federal Trade Commission (FTC) approved a final rule that effectively bans the use of non-compete agreements by U.S. based\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lindabury.com\/firm\/insights\/ftc-issues-final-rule-banning-non-compete-agreements-in-the-u-s.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FTC Issues Final Rule Banning Non-Compete Agreements in the U.S. &#8212; April 26, 2024 &#8212; Lindabury, McCormick, Estabrook &amp; Cooper, P.C. 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