FTC Non-Compete Rule Effective Date

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This week, I became an accidental user of Generative AI to help me with legal research. I didn’t mean to do it. I didn’t ask for AI help. I just Googled the question, “When was the FTC noncompete rule published in the Federal Register?” (I asked, because the effective date is 120 days from publication in the FR.)

Although I wasn’t looking for generative AI, I am now an expert. Google has apparently begun to treating all my Google searches as requests for a generative “AI Overview,” which I now recognize, because it comes with a little med-century “starburst” logo, that reminds me of the bowling alley in The Big Lebowski.

And the AI answer is not bad at all. Here is the generative AI Overview answer Google came up with:

“Yes, the Federal Trade Commission’s (FTC) final rule on non-compete agreements was published in the Federal Register on May 7, 2024. The rule will become effective on September 4, 2024, unless pending litigation delays it.

“The rule bans new non-compete agreements between employers and all workers, including independent contractors, employees, and unpaid workers. The rule considers non-compete agreements to be an unfair method of competition and a violation of Section 5 of the FTC Act.

“The rule requires employers to notify workers in writing that non-compete provisions are unenforceable. The notice must include the identity of the person who entered into the non-compete with the worker. Employers can use the model language provided in the rule to create the notice, and they can deliver it by hand, mail, email, or text message.

Once the rule is in effect, market participants can report suspected violations to the FTC’s Bureau of Competition by emailing noncompete@ftc.gov

Following the AI Generated answer (which does not cite any authority), I clicked the “regular” Google results showing the link to the online Federal Register, which is considered primary source material that can be cited by lawyers, which is at 89 FR 38342, published May 7, 2024 (the Federal Register is not law, but merely where the government “thinks out loud.” But, publication in the FR on May 4 is the operative date that triggers the 120 day countdown to the September 4 effective date.) The Code of Federal Regulations “CFR” (which is law) citation where the final rule is located is 16 CFR 910 and 912.

So yes, two clicks, and I got everything I needed (except someone to read me the entire 165 page rule.) I suppose some things will have to be done the old fashioned way.