On April 23, 2024, by a 3-2 straight party-line vote, the Federal Trade Commission issued a Final Rule banning virtually all non-compete agreements. The new rule does contain limited exceptions for existing non-compete agreements for certain senior executive employees and for certain non-compete agreements associated with the sale of a business. While the final rule directly prohibits non-compete agreements, it does not expressly implicate non-disclosure, non-solicitation or confidential information agreements.
As anticipated, litigation has already been filed challenging this action by the FTC and more litigation is expected. Pending some final resolution regarding the scope and validity of this new FTC rule, companies and/or individuals dealing with non-compete agreements and/or issues are strongly encouraged to consult legal counsel.