FTC to Vote on April 23 on Proposed Rule Banning Non-Competition Agreements


On April 16, 2024, the FTC announced the agency will hold a special Open Commission Meeting at 2 p.m. (Eastern) on April 23 to vote on its proposed rule to ban the use of non-compete provisions in the employment context. The meeting will be held virtually. The FTC’s proposed rule has been pending since January 2023. A link to the virtual meeting will be available on the FTC’s website (FTC.gov) shortly before the meeting begins.

The proposed rule, as issued in January 2023, defines a “non-compete” provision as a contractual term between an employer and a worker that prevents the worker from seeking or accepting employment with a person or entity or from operating a business post-employment. Exemptions to the non-compete ban in the January 2023 proposed rule include:

  • Non-disclosure and non-solicitation provisions in the employment context, unless the terms are so broad that they have the effect of a non-compete.
  • Non-competes entered with the substantial owner or a seller of a business.

A link to the FTC’s notice of the April 23, 2024 meeting is here: Open Commission Meeting - April 23, 2024 | Federal Trade Commission (ftc.gov).

For assistance on any of these issues, please contact a member of our Labor & Employment Team.

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