The Federal Trade Commission (FTC) is publishing a proposed rule (Non-Compete Clause Final Rule (ftc.gov) which would prohibit most employers from entering into non-compete clauses with most workers, also nullifying non-compete clauses entered into previously with most workers.  There is a carve-out for “senior executives.”  If the proposed rule is made permanent, employers will be required to notify workers to inform them that their non-competes are no longer enforceable. 

The FTC is hosting a compliance webinar on May 14, 2024, details can be found here.  Though there are legal challenges to the proposed rule, as written, it is scheduled to take effect September 4, 2024. 

Many of our alcohol and cannabis industry members and individual clients and friends may be affected by this proposed change.  Stay tuned for further updates and information as they become available.

Last modified: May 8, 2024