We previously noted that a new FTC Noncompete Rule was set to start on September 4th. It’s enforcement has now been prohibited nationwide, meaning you no longer have to prepare to change your policies as we have signaled in previous communications.

While this is a positive development for employers using noncompete agreements, it’s important to note that your agreements must still comply with state laws. Courts are likely to continue scrutinizing the enforceability of these agreements, and more state restrictions may emerge. We will continue to provide updates as they become available.

If you have any questions about this update or would like to still move forward with altering your policies in case of future restrictions, please contact me at edgar@officiumdc.com or schedule a time to talk here.