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FTC Says Noncompetes Are Over, Mostly, and Now Courts Will Decide

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The general rule on noncompete clauses in many states has been unchanged for some time. Unless there’s a public policy reason to declare them void, noncompetes are generally enforceable as long as they are reasonable in time and scope and narrowly tailored to protect the employer’s legitimate business interest without imposing an undue hardship on the affected employee. That rule, however, may have just ended—for the most part.

FTC Vote

On April 23, 2024, the U.S. Federal Trade Commission (FTC) voted 3-2 to approve a final rule outlawing most noncompetes nationwide. Specifically, the final FTC rule states that

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