Darren Enenstein, a founding partner of EPGR Lawyers and an expert in high-stakes trade secrets and competition matters litigation, shares the latest on FTC non-compete rules. Beginning on August 23, 2024, the rule of FTC Non-Compete Rule – which prohibits existing non- compete clauses for employees other than senior executives, and outright prohibits future non-compete clauses will go into effect.
The FTC broadly defines a non-compete clause as “a term or condition of employment that prohibits a worker from, penalizes a worker for, or functions to prevent a worker from (1) seeking or accepting work in the United States with a different person where such work would begin after the conclusion of the employment that includes the term or condition; or (2) operating a business in the United States after the conclusion of the employment that includes the term or condition.” Section 910.1. Furthermore, “term or condition of employment” includes both written and oral contractual and workplace terms. The FTC Non-Compete Rule also prohibits post-employment non-competes with independent contractors after the effective date.
To read Darren’s full article, click here.
