Federal Trade Commission (FTC) issued a final rule broadly banning noncompete agreements
The Federal Trade Commission (FTC) issued a final rule broadly banning noncompete agreements on April 23, 2024. New noncompete agreements are prohibited for all individuals, including senior executives. The designation of senior executive applies solely to existing agreements. Such agreements would remain valid if an individual held a senior executive position at the time of the agreement’s initiation. A practice owner would typically be classified as a senior executive if they meet the salary criterion. This ban is more sweeping than the one Governor Hochul vetoed back in December and overrides New York law. The final rule will take effect 120 days after it is published in the Federal Register, which is projected to be August.
The Federal Trade Commission develops policy initiatives on issues that affect competition, consumers, and the U.S. economy. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize.
