Florida Estate Planning Lawyer Blog
The FTC, in their Final Rule released online on Tuesday, April 23, 2024, determined that non-compete agreements are “an unfair method of competition”, and thus are in violation of Section 5 of the Federal Trade Commission Act (the “FTC Act”).
The ban, which will take effect in the latter half of 2024, carves out exceptions for non-competes given to senior executives, as senior executives are seemingly in a better position to negotiate the terms of any non-compete agreement and are less likely to be subject to the ongoing harm done by non-competes that the general workforce has to face.
Non-compete agreements for non-senior executives will no longer be enforceable after the Rule’s effective date.