The Federal Trade Commissionwill vote at an open commission meeting to be held virtually on Tuesday, April 23, 2024, at 2:00 p.m. Eastern on its proposed rule banning employers from entering into noncompete agreements with workers. As reported in our prior Alert, the proposed rule would prohibit employers from entering into, maintaining, enforcing or threatening enforcement of a noncompete clause with virtually any worker and invalidate existing noncompete clauses with both current and former workers. If issued, the final rule would go into effect 60 days following its publication in the Federal Register, and companies would have to be in compliance 180 days after publication. If the noncompete rule takes effect in the same or substantially same form as the proposed rule, it almost certainly will be subject to immediate legal challenges.
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If you have any questions about this Alert, please contact Lawrence H. Pockers, Shannon Hampton Sutherland, Eve I. Klein any of the attorneys in our Non-Compete and Trade Secrets Group, Sean P. McConnell, any of the attorneys in our Antitrust and Competition Group, any of the attorneys in our Employment, Labor, Benefits and Immigration Practice Group or the attorney in the firm with whom you are regularly in contact.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.