Big news from the Federal Trade Commission (FTC) – they've dropped a bombshell with their Final Rule, scrapping the non-compete clauses in employer-employee agreements. This decision caps off a long journey, starting with the FTC's proposed rule over a year and a half ago and ending with a hefty 26,000 comments during the review period.
Here's the lowdown on what this means for you:
New Non-Compete Agreements: Say goodbye to new non-compete agreements. Once the Final Rule kicks in (expected about 120 days after it's published in the Federal Register), any new non-compete agreements are a no-go. They'll be considered unfair competition under the FTC Act.
Existing Non-Compete Agreements: Some existing non-compete agreements will last for senior executives until they expire. But for everyone else, they're toast. Employers must send personalized notices to affected workers, letting them know their non-competes are basically worthless now.
Bona Fide Sale of Business Exception: Selling your business? You're in luck. Non-compete clauses tied to business sales are still good to go, even after the Final Rule kicks in.
But hold up—legal challenges are on the horizon, with the US Chamber of Commerce already launching a lawsuit in federal court.
At The Ezer Agency, we're about keeping things simple and fair. We've already nixed non-competes from our agreements and made our hiring process a breeze. So, we only hire folks who share our values of transparency, integrity, and excellence.
If you want to delve deeper into the legal nitty-gritty, check out Ticora Davis's Instagram video. She has given some insights on navigating tricky legal waters like this FTC ban.
So, what's the takeaway? Stay informed, stay flexible, and maybe consider some legal advice to navigate this brave new world of non-competes.
As the dust settles, we're here to provide you with all the PR updates you need.Â
Stay tuned!