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Non-Compete Clause Rule

FTC · final-rule · Published 2024-05-07 · Effective 2024-09-04 · 89 FR 38342

Document

Document number
2024-09171
Federal Register citation
89 FR 38342
CFR reference
16 CFR 910
Type
Rule
Action
Final rule.
Category
final-rule
Agency
US Federal Trade Commission
Publication date
2024-05-07
Effective date
2024-09-04

Abstract

Pursuant to the Federal Trade Commission Act ("FTC Act"), the Federal Trade Commission ("Commission") is issuing the Non- Compete Clause Rule ("the final rule"). The final rule provides that it is an unfair method of competition for persons to, among other things, enter into non-compete clauses ("non-competes") with workers on or after the final rule's effective date. With respect to existing non-competes--i.e., non-competes entered into before the effective date--the final rule adopts a different approach for senior executives than for other workers. For senior executives, existing non-competes can remain in force, while existing non-competes with other workers are not enforceable after the effective date.

Source

Authoritative
Federal Register document
Machine
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