First few Article Sentences
During an Open Commission Meeting on April 23, 2024, the Federal Trade Commission (“FTC”) voted 3-2 in favor of issuing the Noncompete Clause Rule (the “Final Rule”), which, with limited exceptions, makes it unlawful to enter into noncompete agreements with workers[1] on or after the Final Rule’s effective date, which is 120 days after its publication in the Federal Register (“effective date”). The Final Rule is scheduled to be published in the Federal Register on May 7, 2024, so unless a court enjoins the FTC’s enforcement of the Final Rule, its effective date will be September 4, 2024. The FTC determined that noncompetes are an unfair method of competition and, therefore, violate Section 5 of the Federal Trade Commission Act.