FTC’s Nationwide Non-Compete Ban: What It Means for New York Employees
On April 23, 2024, the Federal Trade Commission (FTC) took a groundbreaking step to promote fair competition by issuing a final rule that bans non-compete agreements nationwide. This significant change is set to impact approximately 30 million American workers, including many in New York, by safeguarding their right to change jobs, fostering innovation, and encouraging new business ventures. Key Takeaways: Federal Non-Compete Ban Effective Date: The nationwide ban will take effect 120 days after publication in the Federal Register, expected around September 4, 2024. Invalidation of Existing Non-Competes: Most existing non-compete agreements will be unenforceable after the rule’s effective date. Notice Requirement: Employers must notify workers, except Senior Executives, that they will no longer enforce non-competes. Scope of Coverage: The ban applies to employees, independent contractors, volunteers, and even sole proprietors providing services. Non-Solicitation Clauses: The