I have an important update on my April 28, 2024 email below. On August 20, 2024, the U.S. District Court for the Northern District of Texas invalidated the FTC’s non-compete rule, and ordered that the rule shall not take effect on September 4, 2024, or thereafter. This ruling prevents the FTC from enforcing the rule against any employer nationwide.
While this ruling may be reversed on appeal, at this time, employee non-compete agreements are not banned under the FTC’s final rule (although they may be banned or heavily restricted under state law). Accordingly, employers are no longer required to issue a notice to current and former employees that their existing non-compete restriction is null and void.