What’s Next for the FTC’s Ban on Noncompetes?

In April 2024, the Federal Trade Commission (FTC) issued a nationwide rule banning the inclusion and enforcement of noncompete clauses in employee contracts. If the rule goes into effect on September 4, it will shake up business competition. Even if the ban is not implemented—which appears likely amid recent legal challenges—the arguments for the rule’s establishment will likely influence future legal decisions on noncompete agreements.

In this article published by the MIT Sloan Management Review, Goodwin partner Robert Frederickson answers commonly asked questions about the FTC rule and shares how business leaders can prepare for its potential effects. Companies should, for instance, consider alternatives to noncompetes for protecting their intellectual property when employees depart, he writes. 

Read the full article: What’s Next for the FTC’s Ban on Noncompetes? 

This informational piece, which may be considered advertising under the ethical rules of certain jurisdictions, is provided on the understanding that it does not constitute the rendering of legal advice or other professional advice by Goodwin or its lawyers. Prior results do not guarantee a similar outcome.