On April 23, the FTC announced a final rule banning non-compete clauses in employment agreements. Existing non-compete agreements for most employees will no longer be enforceable after the final rule’s effective date. The final rule also imposes a sweeping ban nationwide on new non-noncompete agreements. The final rule would apply retroactively and it supersedes all state laws only to the extent that they are inconsistent with the final rule. It is due to become effective 120 days after publication in the Federal Register. The final rule will inevitably be challenged. The U.S. Chamber of Commerce and several other business groups have already initiated suit against the FTC in Texas federal court a day after the FTC announced the rule.