Noncompete agreements: What does the new FTC rule mean?

Editor's note: A federal district court on August 20 blocked implementation of this new FTC rule. Find updated information here: Federal court blocks FTC final rule on noncompete agreements.

In April 2024 the Federal Trade Commission (FTC) issued a rule banning the use of most noncompete agreements—a rule that’s already facing court challenge. If you’re wondering what this might mean for you, the AVMA has a new resource that explains it all.

In it you’ll find general information about noncompete agreements, including examples of what they could look like for both veterinary employees and employers. You’ll also find answers to these questions about the FTC’s rule:

• What is included in the FTC ban on noncompetes?
• When will the FTC rule take effect?
• Will the ban happen for sure?
• Is there anything you should be doing now?

Meanwhile, here are two crucial points to keep in mind:

• The rule is scheduled to take effect on September 4, 2024, but many groups have challenged it. The final answer on whether the rule will indeed go into effect may not be known for some time.
• Since the rule hasn’t yet taken effect, there is no change to any existing noncompete agreements. Whether you’re an employer or an employee, any current noncompete agreements you have may still be valid and enforceable until the rule is implemented.

Download online or get the handout at AVMA Convention

If you’ll be at AVMA Convention 2024 this weekend (June 21-25), be sure to stop by the AVMA Pavilion in the exhibit hall, where you can grab a printed handout to take home to share with your team. 

Stay informed: Three things to do now

Although you don’t want to make any drastic changes based on the FTC rule until the final outcome is known, it’s always crucial to stay informed. In addition to downloading the resource, here are three things you can do now:

• Read the article FTC to ban most noncompete agreements in AVMA News.
• Monitor the progress and developments of the litigation through trusted resources, like the AVMA.
• Subscribe to the Today’s Headlines newsletter to be notified when we publish news articles and blog posts on this issue.