FTC: NONCOMPETE IS AN UNFAIR METHOD OF COMPETITION

Under the final Noncompete Rule, the FTC adopts a comprehensive ban on new noncompetes with all workers, including senior executives.

The final rule defines “non-compete clause” as “a term or condition of employment that prohibits a worker from, penalizes a worker for, or functions to prevent a worker from

(1) seeking or accepting work in the United States with a different person where such work would begin after the conclusion of the employment that includes the term or condition; or

(2) operating a business in the United States after the conclusion of the employment that includes the term or condition.”

The final rule will become effective 120 days after publication in the Federal Register.

Once the rule is effective, market participants can report information on a suspected violation of the rule to the Bureau of Competition by emailing noncompete@ftc.gov