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FTC Issues Rule Banning Noncompete Agreements

On April 23, 2024, the Federal Trade Commission passed a rule banning noncompete agreements.  The FTC previously found that noncompetes negatively impact employees and business in a number of ways and estimates that the move to ban noncompetes will increase the number of new businesses created and will result in higher earnings for workers.

The final rule becomes effective 120 days after publication in Federal Register (around August of this year), but business groups have already taken the matter to court to fight the ban. It is anticipated that further pushbacks will challenge the ruling.


Mallon Lonnquist Morris & Watrous, PLLC is a business, transactional, real estate, and litigation law firm in Denver, Colorado. The attorneys at MLMW regularly represent businesses and individuals in business and contract disputes and related litigation including corporate, employment, partnership, construction, and service agreement disputes.