IN THE PROFESSION
FTC Issues Sweeping Changes On Noncompetes
D . BARTON BLACK BlueSky Law bblack @ blueskylaw . com
H istorically , laws governing restrictive covenants — non-competes , non-solicits , and non-disclosures — were left up to each of the 50 states . This may all drastically change as the federal government has stepped in and taken the reins on the use of non-competes .
On April 23 , 2024 , the Federal Trade Commission ( FTC ) issued a final rule that generally banned non-competes for all workers , except for existing non-competes for senior executives . The FTC ’ s rationale was that non-competes serve as an unfair method of competition , as they prohibit many workers from being able to move from one employer to the next without fear of legal liability . Accordingly , the FTC contends that its ban will spurn competition and provide workers with long-desired mobility .
14 MAY / JUNE 2024