The Federal Trade Commission (“FTC”) recently announced a final version of a rule regarding non-compete clauses in employment contracts (the “Rule”).1
The Rule’s procedural context is important to consider. Although the FTC has issued a “final” version, the Rule’s specific form and timing are still unclear since entities have already vowed to challenge the Rule in court. These court outcomes could alter the Rule’s form or effective date.
As of now, the rule will not take effect until 120 days after the FTC publishes it in the Federal Register (the “Effective Date”). The publication date will materialize once the court cases are resolved.
Complying with new federal laws can seem complex and intimidating. We hope this Question and-Answer document will provide you with some peace of mind and an idea for direction regarding this issue.
