October 2024

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FTC Non-Compete Rule Blocked Nationwide - Employer Considerations

09/05/24

Author: ADP Admin/Tuesday, September 3, 2024/Categories: Compliance Corner , Federal Compliance Update

A Texas court has set aside the Federal Trade Commission’s (FTC’s) Final Rule banning almost all non-compete clauses days before it was set to take effect on Sept. 4. The court’s ruling bars the FTC from enforcing the Final Rule nationwide. While ADP’s scope of services does not include providing advice on employment agreements, we wanted to make you aware of this important development. Our law firm partner Jackson Lewis P.C. has prepared a summary of this development which you can find here.

We recommend that you consult with your counsel if you have questions about the FTC rule or non-compete agreements in general. We can also refer you to an attorney at Jackson Lewis if you are in need of a referral.

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