The FTC Noncompete Rule: Where Do We Go From Here?

On Tuesday, April 23, 2024, the Federal Trade Commission (FTC) voted to finalize a rule abolishing the vast majority of employee noncompetes across the United States. The vote is an unprecedented step for the FTC, and there is significant uncertainty about whether the FTC has the authority to do this in the first place. In fact, the U.S. Chamber of Commerce, among other groups, has already filed a lawsuit challenging the Noncompete Rule, seeking injunctive relief to delay the effective date as well as a ruling to vacate the Noncompete Rule in its entirety. While the process plays out in court, the rule would purport to have a broad impact on a wide array of businesses and industries, including health care, technology, and manufacturing.