In this episode of S&C’s Critical Insights, Annie Ostrager, Co-Head of S&C’s Employment Law Group, and Jeannette Bander, a partner in S&C’s Executive Compensation Group, provide an update on the FTC’s final rule containing a sweeping ban on non-compete agreements. The rule, if implemented, would prevent employers from entering into new non-compete agreements that operate after the conclusion of employment and from enforcing existing non-compete clauses against employees who are not defined as “senior executives.”
Annie and Jeannette note that the final rule is quite broad and makes it clear that the FTC views anything that could be characterized as operating as a non-compete agreement in practice as a prohibited non-compete clause.
They also discuss the exceptions and limitations of the rule and provide guidance on next steps and considerations given the current employment law landscape.