FTC Issues Final Rule Prohibiting Non-Compete Agreements in The US.

FTC Issues Final Rule Prohibiting Non-Compete Agreements in The US.

The Federal Trade Commission ("FTC") issued a final rule that prohibits non-compete agreements in the United States ("Final Rule"). The FTC concluded that agreements between employers and their workers that restrict such workers' ability to work after terminating their employment are an unfair method of competition and an exploitative practice that adversely affects competitive conditions in labor, product, and service markets. The Final Rule will become effective September 4, 2024, and will apply retroactively to existing non-competes.

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