Banning Non-Compete Agreements: What You Need to Know

The Federal Trade Commission (FTC), voted to adopt a rule banning non-compete agreements nationwide. 

1.) The FTC Rule is Part of a Larger Movement to Curtail Non-Competes 

This change is following many states whose rules are making non-competes a thing of the past. All employers check their individual states. 

2.) The FTC's Rule is Expansive 

The change encompasses pretty much all industries and all works. 

3.) Limited Carve-Out for Existing Non-Competes with "Senior Executives" 

Senior Executive is narrowly defined so it will have limited impact. 

4.) Sale of a Business Exception Limited to "Bona Fide" Sales 

This will be limited as it must be between independent parties. 

5.) Exceptions for Causes of Action 

Pre-Dating the Rule and Good-Faith Integration of the Rule 

6.) In conclusion…

Entities must adapt and Prepare for a World Without Non-Competes 

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This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship. 

For more information on this and other topics, please contact Kevin via any of the channels listed below:

📧 kevin@kmckernan.com  | 📞 718-317-5007