Federal Trade Commission Votes to Issue Non-Compete Clause Rulemaking

The Federal Trade Commission has voted to move forward with its proposed rulemaking prohibiting non-compete agreements.  The proposed rule does grandfather pre-existing non-compete agreements with Senior Executives; however, going forward the ban applies to all employees.  In addition, the final rule requires employers to notify employees that any pre-existing non-compete agreements will not be enforced. 

This rule will take effect 6 months after the final rule is published which will be sometime in the future.  In the interim, Employers should consider limiting or eliminating the use of non-compete provisions.