CLIENT NEWS ALERT: FTC Bans Non-Competes (What You NEED To Know)

On Tuesday, the FTC issued a new rule banning non-competes nationwide. This is BIG news, but there’s a lot of confusion as to what this actually means. Here’s what we know so far:

  • The rule, IF it goes into effect at all, goes into effect 120 days from publication. This hasn’t happened yet.
  • The rule WOULD apply retroactively, meaning it would void existing non-competes.
  • Nearly all non-competes would be void, except for pre-existing non-competes for “senior executives” (people in a policy-making decision and who earn at least $151,164/year) and non-competes from a business/asset sale.
  • The rule does NOT apply where a cause of action related to a non-compete accrued prior to the rule’s effective date.

What can employers do now? As expected, the rule has received significant backlash from business groups. Legal challenges are already filed. So we’re in somewhat of a holding pattern until the legal challenges play out. The rule may change, may go away entirely, or may simply go into effect. We just don’t know yet.

If the rule DOES go into effect, employers will be required to give written notice “on paper” to let workers with non-competes know that they are no longer enforceable.

We’ll provide updates as things develop so that employers know what they’re required to do. Hang tight for now, this will be interesting to watch!

And as always, if you’ve got questions, you know we’ve got answers.

~ The W + K Team


Established in 2019, Weinstein + Klein is a boutique law firm focused on labor and employment law, business matters, and litigation. W + K works with businesses, individuals, and entrepreneurs to protect their legal interests. In addition to advising clients on employment matters and working with businesses to minimize their risk of litigation, we advise small businesses and start-ups on various business law matters.

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