FTC ISSUES RULE PROHIBITING NON-COMPETES
On April 23,2024, the Federal Trade Commission (FTC) issued a final rule intended to ban the use and enforcement of most non-compete clauses signed by workers. Importantly for direct sellers, the rule applies to their distributors. Unless the worker is a senior executive, non-competes will soon be unenforceable nationwide - provided the rule withstands challenges by business groups.