Non-Compete BAn Small Business Owner ComplIance Guide

Last Updated: Jun 28, 2024

[[We are currently working on a full explanation and guide for the Non-Compete ban. However, below is a link to the FTC’s Small Business Compliance Guide as well as the FTC’s model language for the notice employers are required to send their employees if they currently have non-compete in place. This notice is required to be sent by Sept 4th, 2024]]

FTC Notice to Employees Model Language

Below is a (slightly modified) example from the FTC of the Notice employers are required to send all current employees that are under a non-compete prior to Sept 4, 2024. This Notice may be sent via an all staff email even if you do not use non-competes with all workers.

This notice must be sent by Sept 4, 2024

A new rule enforced by the Federal Trade Commission makes it unlawful for us to enforce a non-compete clause. As of [DATE EMPLOYER CHOOSES BUT NO LATER THAN SEPT 4, 2024], [EMPLOYER NAME] will not enforce any non-compete clause against you. This means that, as of [DATE CHOSEN ABOVE]:

·      You may seek or accept a job with any company or any person—even if they compete with [EMPLOYER NAME].

·      You may run your own business—even if it competes with [EMPLOYER NAME].

·      You may compete with [EMPLOYER NAME] following your employment with [EMPLOYER NAME].

The FTC’s new rule does not affect any other terms or conditions of your employment. For more information about the rule, visit ftc.gov/noncompetes. Complete and accurate translations of the notice in certain languages other than English, including Spanish, Chinese, Arabic, Vietnamese, Tagalog, and Korean, are available at ftc.gov/noncompetes.