Non-Compete Clause Rule

Pursuant to the Federal Trade Commission Act (‘‘FTC Act’’), the Federal Trade Commission (‘‘Commission’’) is issuing the Non-Compete Clause Rule (‘‘the final rule’’). The final rule provides that it is an unfair method of competition for persons to, among other things, enter into non-compete clauses (‘‘non-competes’’) with workers on or after the final rule’s effective date. With respect to existing non-competes—i.e., non-competes entered into before the effective date—the final rule adopts a different approach for senior executives than for other workers. For senior executives, existing non-competes can remain in force, while existing non-competes with other workers are not enforceable after the effective date.