On May 7, the Federal Trade Commission (FTC) adopted a final rule (the noncompete rule or the rule) outlawing nearly all noncompete agreements across the United States.

Noncompete agreements, often included in employment contracts, restrict employees from working for or starting competing businesses after leaving their current employers. Originally intended to protect employers’ trade secrets and prevent unfair competition, these agreements have become increasingly pervasive across various industries and job categories. It is estimated that one in five American workers is the subject of a noncompete.