FTC Non-Compete Model Notice Language

The Federal Trade Commission’s Noncompete Clause Rule requires that businesses notify their workers who have existing post-closing non-compete agreements that they are no longer enforceable. See this blogpost for an explanation of the new rule: https://www.joelankney.com/post/no-more-non-competes-for-most-employees-and-contractors

To be in compliance with the notice requirement employers are required to notify their workers with non-compete agreements on or before September 4, 2024, that their non-competes are no longer enforceable.

The notice is required to be sent to all workers, independent contractors, interns, externs, volunteers, and other non-senior executives. The notice can be delivered by email or text message or delivered by a paper notice either by hand or by mail. If contact information for a former worker is unavailable the company does not have to send them a notice. The FTC has provided the following model language of the notice that complies with all the notice requirements. The model language is available to be copied and pasted by companies in English, Spanish, Chinese, Arabic, Vietnamese, Tagalog, and Korean.

FTC Model Non-Compete Notice Language:

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 SEPTEMBER 4, 2024], [EMPLOYER NAME] will not enforce any non-compete clause against you. This means that as of [DATE EMPLOYER CHOOSES BUT NO LATER THAN SEPTEMBER 4, 2024]:

·        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.

You may cut and paste the above language into your notices to your workers.

Contact Joel Ankney at joel@jalawoffice.com if you have any questions about whether the new non-compete rule applies to you or your business or if you need help notifying workers that their non-competes are no longer enforceable.