FTC Rule Bans Non-Competes - But Will That Be Enforced?

Following the Federal Trade Commission’s April 23, 2024 historic Final Rule to ban most non-competition agreements between employers and employees, the resounding question has been, “Will they, or won’t they, be enforced??”

The U.S. Chamber of Commerce has already filed a lawsuit in federal court seeking to block the FTC’s non-compete ban from going into effect in August 2024.  The basis of that appeal is that non-competes have always been a strictly state law matter, and that there is no basis for a federal administrative ruling to pre-empt state powers in this regard.

However, it is true that over the years, there has been a groundswell of opposition to non-competes, and many states now ban them for some or all employees.  Whether or not non-competes are enforceable has historically been based upon both the state law that governs that agreement, and the facts of an individual’s particular situation.

For advice on your matter, get a legal review of your non-compete agreement and work with an attorney to analyze how the facts of your situation would most likely be viewed under existing state law.