FTC Announces Rule Banning Noncompetes

[axeman462]

not sure about other states, but in Florida, these were already pretty much non-enforceable. Used mostly to as an attempt to scare former employees/1099s away from the business when they departed.

Now it looks like they will be illegal

FTC Announces Rule Banning Noncompetes

Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamen

www.ftc.gov

 

[marindependent]

"existing noncompetes for the vast majority of workers will no longer be enforceable after the rule’s effective date. " Awesome

"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. " Wow

"Trade secret laws and non-disclosure agreements (NDAs) both provide employers with well-established means to protect proprietary and other sensitive information. Researchers estimate that over 95% of workers with a noncompete already have an NDA."

Its going to be fascinating to watch companies now begin working around these new rules.