FTC to Hold Meeting on April 23 to Vote on Approval of Final Rule to Make Non-Compete Clauses in Employment Contracts Unlawful
The Federal Trade Commission (FTC) announced a special Open Commission meeting on April 23, 2024 at 2PM ET to discuss and vote on the final non-compete rule. On January 5, 2024, the FTC released a proposed non-compete rule that would make it an unfair method of competition under the Federal Trade Commission Act for an employer to: (1) enter into or attempt to enter into a non-compete clause with a worker; (2) maintain a non-compete clause with a worker; or (3) represent to a worker that they are subject to a non-compete clause. Employers would also have to rescind any existing non-competes within six months of the final rule taking effect and affirmatively communicate to current and former workers that their non-competes are no longer valid.
The meeting agenda for the April 23rd meeting includes: (1) a vote on whether to authorize public disclosure of the final rule; (2) brief remarks from FTC Chair Lina Khan; (3) a staff presentation from the Office of Policy Planning on the final noncompete rule under consideration; and (4) a Commission vote on whether to issue the final rule.
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