On April 23, 2024, the Federal Trade Commission, by a 3-2 vote, adopted a rule establishing an unprecedented nationwide ban on noncompete agreements. This sweeping regulation, extraordinarily broad yet somewhat vague, extends to other types of agreements such as non-solicitation and confidentiality agreements, as well as other restrictive covenants that could arguably prevent competition.
This new program provides an overview and analysis of the FTC’s final rule, what companies need to know about the notice requirements, and what agreements can be used going forward to protect trade secrets, confidential business information, and goodwill.