Ver la versión en español aquí.

On April 25, we posted a blog on the Federal Trade Commission’s new rule that will retroactively ban most non-compete agreements and prohibit such agreements going forward, with limited exceptions. At the time we posted, the date the new rule would go into effect was not clear as the FTC needed to file the rule in the Federal Register-the U.S. government’s daily gazette that publishes new rules from federal agencies, among other items. The FTC said that once it made this filing,  the rule would take effect 120 days later.  Last Tuesday, May 7, the FTC filed the rule in the Federal Register. And so, the 120 days began to run from that date and will be effective on September 4, 2024.

See Non-Compete Clause Rule here. However, there are currently multiple federal lawsuits filed seeking to block the final rule from becoming effective, including one brought by the U.S. Chamber of Commerce. Therefore, it is unclear if the rule will take effect on September 4 or if it will be invalidated by the courts. As soon as we hear something, we will provide an update.