05/13/2024
The Federal Trade Commission finalized a new rule, tentatively effective Sept. 04, 2014, mostly banning covenants not to compete or "noncompetes." Importantly, there is an exception in the context of selling a business.
Under the rule, employers who have noncompetes with employees that are voided under this new rule must give notice to the employee that the noncompete will not be and cannot legally be enforced against the employee.
Here's the issued final rule (skip to page 561):https://www.ftc.gov/system/files/ftc_gov/pdf/noncompete-rule.pdf
Here's the FTC's fact sheet on the rule:https://www.ftc.gov/system/files/ftc_gov/pdf/Non-Compete-Fact-Sheet.pdf