On April 23, 2024, the Federal Trade Commission (FTC) finalized the language for a rule that bans noncompete agreements across the United States. The new rule will go into effect 120 days after its publication in the Federal Register. The ban will impact approximately 30 million workers, nearly one in five Americans, who are currently subject to a non-compete agreement. The FTC projects that this rule will spur the creation of over 8,500 new businesses each year, raise worker wages, and foster innovation in various industries.
When the new rule goes in effect, existing non-competes with all employees other than senior executives will become unenforceable. Employers will need to notify employees affected by the rule change. After the rule goes into effect, employers will not be able to enforce any new non-compete agreements regardless of the seniority of the employee.
Navigating this new regulation may require legal guidance, and that’s where Burkhalter Law can help. Our experienced attorneys are well-versed in employment law and can guide your business through compliance with this new FTC rule. Contact us to ensure you’re prepared for the changes ahead.
