Update: FTC Non-Compete Rule Published

We previously reported on the FTC non-compete rule here, noting that the rule banning most non-compete clauses in employment contracts would become effective 120 days after it was published in the Federal Register.  On May 7, 2024, the FTC rule was published in the Federal Register. Subject to the pending legal challenges to the rule, it will go into effect on September 4, 2024.  A ruling is expected regarding one of the legal challenges by July 3, 2024.  If you have any questions on the FTC rule, you may refer to our previous client alert on the topic here or contact Honigman’s Labor and Employment attorneys here.

Honigman is also hosting a webinar next week discussing the intricacies of this rule. We will provide strategies for preparing for compliance in anticipation of any legal challenges to the ruling. Please register here.