FTC Bans Noncompete Agreements

The Federal Trade Commission (FTC) finalized its rule banning noncompete agreements last week.  While the final rule bans all noncompete agreements moving forward from its effective date, it differs from the proposed rule by providing an exception for existing noncompete agreements for senior executives. Other existing noncompete agreements are not enforceable following the effective date. The rule is set to take effect after 120 days, but various business groups, including the Chamber of Commerce, have vowed to challenge it in court, arguing that the FTC greatly overstepped its authority and enacted a rule that will hurt companies.