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FTC Guide on Compliance with Non-Compete Agreement Ban

Featured, NSGA News • May 28, 2024

DOWNERS GROVE, ILLINOIS (May 28, 2024) – The Federal Trade Commission’s (FTC) new rule banning non-compete agreements for certain workers is scheduled to take effect September 4, 2024. The Rule covers all types of businesses in nearly all industries and applies to non-competes with all workers, full-time and part-time, including employees, independent contractors, interns, volunteers, apprentices and others. However, an existing non-compete with a senior executive is still valid.

For workers other than senior executives, you cannot enforce existing non-competes after the September 4 effective date, and the FTC reports you must give these workers notice that their non-competes will not be enforced.

Click here to read about the three steps to comply and FAQs in this guide from the FTC.


Federal Trade Commission Non-Compete Agreements NSGA