Class VI Pathfinder’s Post

The Federal Trade Commission (FTC) voted to release its final rule banning most non-compete agreements nationwide in an effort to promote competition, protect workers’ freedom to change jobs, and foster new business formation. As a result of this change, the FTC predicts an additional 8,500 new business formations annually, increased take-home pay for covered workers by $524, and a reduction in health-care expenditure of almost $200 billion. Current estimates are that over 100,000,000 million Americans are covered by a non-compete agreement. While lawsuits have already been filed to stop the rule from taking effect (http://payx.me/992), the rule goes into effect August 21, 2024.

This is huge. FTC enacts new rule that will ban most non competes . From the FTC: Under the FTC’s new rule, existing noncompetes for the vast majority of workers will no longer be enforceable after the rule’s effective date. Existing noncompetes for senior executives - who represent less than 0.75% of workers - can remain in force under the FTC’s final rule, but employers are banned from entering into or attempting to enforce any new noncompetes, even if they involve senior executives.

📢 Join Us Thursday, May 2, for a Timely Discussion on the FTC's Recent Non-Compete Ban Last week, the Federal Trade Commission (FTC) issued a significant ruling banning all employers from using non-compete clauses in contracts with workers in most circumstances. To help you navigate these changes, our attorneys Erin Schroeder and John Dunn will be leading a discussion tomorrow, covering the following topics: - An overview of the FTC's final rule and its immediate impact on noncompete agreements and required notice provisions - Specific provisions for senior executives and ongoing restrictions - Alternatives to noncompetes, such as NDAs and trade secret laws - Current legal challenges to the FTC’s final rule and potential impact on implementation Register below! #ftc #noncompete #employmentlaw #employmentcontracts #businesslaw

The Federal Trade Commission (FTC) recently concluded a rule aimed at prohibiting employers from imposing restrictions on their employees regarding future employment locations as a prerequisite for their job. Our Vice President Ashton Eller explains the Chamber's opposition to this ban on noncompete agreements and why it's detrimental for businesses. The U.S. Chamber has also sued the FTC, arguing it does not have the authority to regulate noncompete clauses. #noncompetes #ftc #business #chambersofcommerce #noncompete #noncompeteagreements

The FTC voted 3-2 (along party lines) today to adopt a nationwide ban on noncompetes for workers. The ban will become effective 120 days after the FTC formally publishes the rule. The Rule includes very limited “grandfathering” protection for existing non-compete agreements, but only for “senior executives.” Senior executives are those workers annually earning $151,164 who are also in a narrowly defined “policy-making position.” The FTC says ~0.75% of all workers would meet this definition, but I think it will be an even smaller group (maybe 5-10 policy-making officers per company, even at the country's largest organizations). Expect numerous challenges to the Rule, which undercuts hundreds of years of state-by-state regulation of non-competes. The Rule's fate likely will land in front of the Supreme Court in 2025 or 2026 (but hopefully will be enjoined in the meantime). https://lnkd.in/g7n6-J9i

Check out our Alert Memo on the final FTC rule banning noncompetes, including our insights!

FTC Announces Rule Banning Noncompetes. Much more attention should be paid on what all information is shared with employees and may need to limit information to a need to know especially for small businesses. Of course there is still Trade Secret laws and the NDA however this change does limit the recourse a company has to recover. #noncompete #banned #smallbusiness

Yesterday, the Federal Trade Commission (FTC) voted 3-2 to issue a proposed final rule (Final Rule) to ban almost all post-employment non-compete agreements. This move could have far-reaching implications for workers across the country. Want to learn more about the Final Rule's key elements and other important takeaways? Check out insights from my colleagues Carrie Amezcua, Gretchen Jankowski, Wendelynne J. Newton, and Jason Murtagh. #FTC #NonCompeteAgreements #Antitrust

Today, the Federal Trade Commission (FTC) voted 3-2 to ban noncompete agreements. The final rule would ban new noncompetes and require companies to let current and past employees know they won't enforce them. The new rule is slated to go into effect in 120 days after it is published in the Federal Register. However, certain business groups are expected to file lawsuits to block the new rule. We will continue to monitor these developments to assess how they may impact your businesses.