In April 2024, the Federal Trade Commission (FTC) issued a final rule banning most non-compete agreements for U.S. workers. This marks a historic shift in employment law.

What’s Banned:

• Employers may no longer enforce non-compete clauses for nearly all workers.
• Existing agreements are void, with limited exceptions (e.g., for high-level executives).

Why This Matters for Business:

• Employers must reassess how they protect trade secrets, client lists, and proprietary methods.
• Expect greater employee mobility and competitive recruitment challenges.

Recommended Response:

• Replace non-competes with strong non-disclosure and non-solicitation agreements.
• Update employment contracts and HR policies.
• Train teams on safeguarding confidential information internally.

Bottom Line:
Adapt your employment strategies now to remain compliant—and competitive.