The Federal Trade Commission’s Final Rule banning most noncompete agreements with workers was set aside by an August 20, 2024 nationwide order issued in the United States District Court for Texas. The new rule was set to go into effect on September 4, 2024 and would have precluded for-profit employers from entering into and enforcing most noncompete agreements with their employees and other workers.
Because the Final Rule will not go into effect, employers will not be required to notify workers about the enforceability of their noncompete agreements on or before September 4, 2024. Unless the Texas Order is overturned, the enforceability of noncompete agreements will be subject to state and local laws. The FTC is reportedly considering an appeal.
You can read more about the Final Rule here.
If you have further questions about non-compete agreements and other restrictive covenants, like non-solicitation provisions, you can reach out to the attorneys at Weiss Zarett Brofman Sonnenklar & Levy, P.C.
Weiss Zarett Brofman Sonnenklar & Levy, P.C. is a Long Island law firm providing a wide array of legal services to the members of the health care industry, including corporate and transactional matters, civil and administrative litigation, healthcare regulatory issues, bankruptcy and creditors’ rights, and commercial real estate transactions.
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