DC Employment Lawyers note that the Federal Trade Commission (FTC) is scheduled to convene a virtual open commission meeting on Tuesday, April 23, 2024, at 2pm ET, where it is widely anticipated to issue its final ruling on noncompete agreements. The initial proposal put forth in 2023 sought to prohibit most noncompetes, sparking a considerable public response with over 26,000 comments submitted for consideration.
As of the current posting date, the precise parameters of the ban remain uncertain. Questions linger regarding whether it will encompass all noncompetes or specifically target those with earnings below a certain threshold. Additionally, there is speculation about its applicability in various scenarios, such as post-business sale arrangements. Moreover, the potential implications for existing state-level noncompete statutes are under scrutiny, alongside legal debates surrounding the FTC’s jurisdiction in issuing such a mandate. DC Employment Lawyers raise queries about how the ruling might affect ongoing contractual obligations and what duties employers will bear concerning their existing noncompete agreements.
It’s worth noting that while the rule is anticipated to outlaw noncompetes, it is not expected to extend to nondisclosure or nonsolicitation provisions. However, the exact ramifications of the ban on these supplementary clauses remain to be seen. Furthermore, it’s essential to highlight that the rule will not come into effect until 180 days following the publication of the final ruling.