Erin Johnson and Daniel Smith Shed Light on FTC’s Final Rule on Non-Compete Clauses

07.01.2024

In the Summer 2024 edition of the Virginia Bar Association’s Young Lawyers Division newsletter, Erin Johnson and Daniel Smith authored an article titled “The FTC’s Non-Compete Ban: Leveling the Playing Field?”

The article discusses the Federal Trade Commission’s Non-Compete Clause Rule, issued under the FTC Act, which broadly prohibits employers from entering into or enforcing non-compete agreements with most workers beginning September 4, 2024. The Rule carves out limited exceptions for senior executives and for non-competes executed before the effective date.

Erin and Daniel outline the FTC’s rationale for the regulation, noting that non-compete clauses constitute unfair methods of competition that restrict labor mobility, suppress wages, and hinder market competition.

Click here to read the full article in the VBA Young Lawyers Division newsletter.