FTC Non-Competes Ban Update – No Longer Effective Sept. 4th

As noted previously by AHCA/NCAL, on April 23, 2024, the Federal Trade Commission’s (FTC’s) Final Non-Compete Rule was released and was scheduled to go into effect 120 days after publication in the Federal Register (effective September 4, 2024). 

The rule would make nearly all preexisting and future U.S. non-compete agreements with workers unenforceable, except for preexisting non-compete agreements with “senior executives.” The AHCA/NCAL summary released earlier this year on the rule can be found here​. 

Yesterday, a federal judge in Texas barred the FTC rule from taking effect. The U.S. District Judge said the FTC does not have the authority to ban practices it deems unfair methods of competition by adopting broad rules.