Understanding the Impacts of the FTC’s New Rule on Non-Compete Clauses

Steptoe & Johnson PLLC presented a webinar discussing the recently finalized rule by the Federal Trade Commission (FTC), which will significantly impact non-compete clauses in employment contracts.

On April 23, 2024, the FTC voted to finalize a sweeping rule which will prohibit the use of most non-compete clauses by employers engaged in commerce. The rule will fundamentally alter the protective measures many employers utilize to protect their businesses from unfair competition by current and former workers.

Our experienced team of employment trial lawyers delved into the following key topics:

• Status of judicial review and anticipated effective date of the rule
• Businesses and entities covered by the rule
• Definition of “non-compete clause” and other key terms
• Exceptions to the rule
• Strategies for safeguarding investments in confidential information, employee training, and customer relationships under the new rule
• Anticipated litigation issues post-rule implementation