Notice: FTC Announces Rule Banning Non-Competes

The Final Rule becomes effective 120 days after publication in the Federal Register. During that time, we expect trade associations and
businesses across the country to challenge the Final Rule and seek an injunction against it. In fact, two lawsuits have already been filed. We
expect at least some of the challenges to be successful because any final rule in which the FTC claims authority to ban restrictive covenants is not likely to withstand constitutional scrutiny. We recommend waiting at the minimum 120 days post publication of the Final Rule and the results of the lawsuits against it.