FTC Issued Final Rule Prohibiting Non-Compete Clauses

On Tuesday, the Federal Trade Commission (FTC) issued a final rule prohibiting non-compete clauses under Section 5 of the FTC Act. This rule bans most non-compete clauses for workers nationwide, and renders many existing non-competes unenforceable.
Don’t panic: The FTC’s rule does not apply to non-competes accompanying the sale of a business. The rule applies in the employer-employee context (and even then excludes certain senior executives).
Non-competes accompanying the sale of a business must still be reasonable in duration and scope. Five years in duration covering the current go-to market footprint of the business is a good starting point. Just remember to consult a lawyer; nothing I write on social media should be construed as legal advice.

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