The Federal Trade Commission (FTC) plans to meet today April 23, 2024, to vote on the a final rule barring nearly all non-compete agreements. The rule was proposed in January 2023, for more information see here. The rule likely would create some space for non-solicitation and confidentiality agreements to remain effective, but the new rule will require all employers to review their restrictive covenants to determine whether such agreements are in compliance.
We anticipate that lawsuits will be filed quickly after the FTC’s vote challenging the FTC’s authority to create such a sweeping restriction should the FTC approve the final rule.
Mark K. Cameron