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BILLINGCODE:6750-01-P
FEDERALTRADECOMMISSION
16CFRPart910
RIN3084-AB74
Non-CompeteClauseRule
AGENCY:FederalTradeCommission.
ACTION:Finalrule.
SUMMARY:Pursuanttosections5and6(g)oftheFederalTradeCommissionAct(“FTC
Act”),theFederalTradeCommission(“Commission”)isissuingtheNon-CompeteClauseRule
(“thefinalrule”).Thefinalruleprovidesthatitisanunfairmethodofcompetition—and
thereforeaviolationofsection5—forpersonsto,amongotherthings,enterintonon-compete
clauses(“non-competes”)withworkersonorafterthefinalrule’seffectivedate.Withrespectto
existingnon-competes—i.e.,non-competesenteredintobeforetheeffectivedate—thefinalrule
adoptsadifferentapproachforseniorexecutivesthanforotherworkers.Forseniorexecutives,
existingnon-competescanremaininforce,whileexistingnon-competeswithotherworkersare
notenforceableaftertheeffectivedate.
DATES:Thefinalruleiseffective[INSERTDATE120DAYSAFTERDATEOF
PUBLICATIONINTHEFEDERALREGISTER].
FORFURTHERINFORMATIONCONTACT:BenjaminCadyorKarunaPatel,Officeof
PolicyPlanning,202-326-2939(Cady),202-326-2510(Patel),FederalTradeCommission,600
PennsylvaniaAvenue,NW,MailStopCC-6316,Washington,DC20580.
SUPPLEMENTARYINFORMATION:
I.Background
1
A.SummaryoftheFinalRule’sProvisions
TheCommissionproposedtheNon-CompeteClauseRuleonJanuary19,2023pursuant
1
tosections5and6(g)oftheFTCAct.Basedont
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