As previously covered on our HR Law Talk blog, the Federal Trade Commission’s (FTC) non-compete ban (FTC Rule or the Rule) is scheduled to take effect on September 4, 2024. Issued in April, the FTC Rule prohibits all non-competes arising out of employment relationships – with the exception of existing agreements with “senior executives,” as defined by the Rule. Although many legal experts have hypothesized that the federal courts would enjoin the Rule, the future of the FTC Rule remains uncertain. Accordingly, employers must remain informed on the most recent court rulings involving the FTC Rule and prepare as though it will take effect on September 4.

On April 23, the Federal Trade Commission (FTC) voted to adopt a monumental final rule prohibiting employers from entering into non-competes against all workers within the jurisdiction of the FTC – a move that is poised to reshape how employers approach employment agreements.

For healthcare provider companies, a critical question about the FTC’s decision is whether it applies to nonprofit entities. I recently analyzed the impact on the healthcare industry of the vote by the Federal Trade Commission (FTC) to move forward with a final rule banning non-compete agreements for an article in Modern Healthcare.