Client Alert

FTC Announces Publication Date for Expansive and Unprecedented Non-compete Ban

April 30, 2024

By Jessica E. Mendelson,Sarah L. Reeves,& Carson H. Sullivan

As stated in original Client Alert, on April 23, 2024, the Federal Trade Commission (FTC) adopted a NonCompete Clause Rule (the “Rule”) prohibiting most employee non-compete agreements as unfair methods of competition. The FTC has just announced that the final Rule will be published in the Federal Register on May 7, 2024.  This means—barring any changes from the ongoing legal challenges— that the Rule’s effective date will be Wednesday September 4, 2024 (120 days after publication).  The FTC is already facing several legal challenges regarding their authority to issue the new Rule, including from the U.S. Chamber of Commerce; ATS Tree Services, a Pennsylvania based small business; and Ryan LLC, a Dallas-based tax services provider.  It will be important for employers to stay up-to-date on the outcomes of these challenges and their potential impact on the Rule and its effective date.  

Click here for a PDF of the full text

Practice Areas

Antitrust and Competition

Complex Litigation and Arbitration

Employee Mobility and Trade Secrets

Employment Litigation

Financial Services Litigation

Intellectual Property


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Amit Mehta

Partner, Corporate Department

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Jennifer S. Baldocchi

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Marc E. Bernstein

Partner, Employment Law Department

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Kenneth W. Gage

Partner, Employment Law Department

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Patrick W. Shea

Partner, Employment Law Department

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Jessica E. Mendelson

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Michael F. Murray

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Jeff A. Pade

Partner, Litigation Department

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Ryan Phair

Partner, Litigation Department

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Carson H. Sullivan

Partner, Employment Law Department

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Michael S. Wise

Partner, Litigation Department

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