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FTC Noncompete Rule BLOCKED The rule would have required employers to rescind existing noncompete agreements and actively notify workers that they are no longer in effect, except in the case of existing noncompete agreements for senior executives, and ban new noncompetes. It was scheduled to go into effect on September 4 – in just two weeks – but now has been permanently blocked. Here's a great article by Robert S. Teachout, SHRM-SCP #brightmine #noncompetes #FTC #federaltradecommission #employmentlaw #hr #noncompeteagreements

It's a definite maybe. The ban on noncompete agreements is back on again...sort of. A Philadelphia federal judge ruled that FTC rule would be allowed to stand. The rule issued in April would essentially ban the use of such agreements and make existing ones unenforceable. But it's not over. A separate case in Texas is awaiting a decision, leaving employers in legal limbo. And that's not necessarily the end of it. Roughly 18 percent of the U.S. workforce, or 30 million people, are covered by noncompete agreements. The use of noncompetes is widespread and spans across industries from fast food workers to physical therapists to CEOs. In many cases, they really don't make much sense. And in some states such as California where noncompetes have been non-enforceable for years, they're often still included in the pile of HR paperwork workers must complete and sign the first day of work as a condition of employment. For employers, the argument for such agreements is they protect workers from taking proprietary and confidential information to a competitor. On the flip side, tens of millions of employees have been prevented from leaving to work for a competitor or start a competing business. In the broader sense, they've been used to prevent upward mobility. It likely won't be over for a while. Regardless of the decisions by either court, the reality is this will likely face a number of appeals all the way up to the Supreme Court. Unless they're based in states with specific bans and policies around noncompetes, employers will likely be in a legal gray area for a while longer https://lnkd.in/gU_PJjFt #noncompete #workers #workforce #talent #hiring #humanresources #legal

The new FTC rule on non-compete clauses affects non-compete agreements for lower-level workers The rule will become unenforceable six months after the rule's implementation. Existing non-competes for high-earning executives in policy-making positions will remain effective. How do you think this rule will impact your industry? #NonCompeteClauses #FTC #JobMobility https://lnkd.in/gu9kzC2r

On April 23, 2024, the Federal Trade Commission voted to issue a final rule prohibiting employers from using non-compete clauses as part of any agreement subject to a few narrowly tailored exceptions. The following article by A.Y. Strauss attorneys Ross Fox and Maria A.G. Harper, Esq. guides employers and employees through considerations for proactively responding to this historic change. Read more: https://lnkd.in/g9srtAER #NonCompetes #EmploymentContracts

On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a final rule that would prohibit employers from entering into or enforcing noncompete clauses with most employees. The final rule was published in the Federal Register on May 7, 2024, and is scheduled to take effect 120 days after such date on Sept. 4, 2024. Check out our blog for a Compliance Bulletin that provides an overview of the key provisions of the final rule and steps employers may take to prepare for the FTC’s ban on noncompete clauses: https://ow.ly/NBXA30sCU1R Reach out to hr@employco.com for personalized support and resources. #ftc #noncompete #hrcompliance #confidentiality #nonsolicitation #hrbestpractices

As many are aware, the FTC voted yesterday in favor of its rule effectively banning the use of non-compete agreements. Click the link below for a V&E breakdown of what this means for employers going forward. #Noncompetes #employmentlaw #FTC #noncompeterule #antitrust #unfaircompetition

Recently, the Federal Trade Commission (FTC) issued a final rule banning noncompete agreements in most aspects of employment. Specifically, the agency believes the ban will help promote competition between businesses. As a result of eliminating noncompete agreements, the FTC says a worker’s fundamental freedom to change jobs is now protected. Additionally, the agency believes that innovation will increase and new businesses could be formed. https://lnkd.in/ggqnKez8 #employers #employmentlaw #ftc #noncompete #humanresources

Federal regulators on April 23rd enacted a nationwide ban on new noncompete agreements. The Federal Trade Commission voted 3-to-2 to approve the new regulation, which will ban noncompetes for all workers when the regulation takes effect in 120 days. This represents a huge shift in the mindset of the workforce and employees who have played by this rule for years and regarded the statue as common practice. It is simply to protect corporate proprietary information, trades, client bases and internal workings; but for employees and personnel that work within a specific industry and trudged through the ranks, it represented corporate overreach to control their career path, earning potential and ability to better themselves. (Please click the graphic to continue reading) https://lnkd.in/gCfYvfvW #competition #regulation #technologyleaders #IQofEverything #careerdevelopment #IQwired Darcee Nelan Kelly Forsyth Robert Hurst Jamie Stultz Rochelle Maki-Williams Sacha Basho

On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a final rule that would prohibit employers from entering into or enforcing noncompete clauses with most employees. The final rule was published in the Federal Register on May 7, 2024, and is scheduled to take effect 120 days after such date on Sept. 4, 2024. Check out our blog for a Compliance Bulletin that provides an overview of the key provisions of the final rule and steps employers may take to prepare for the FTC’s ban on noncompete clauses: https://ow.ly/I5HJ30sCU2Q Reach out to hr@employco.com for personalized support and resources. #ftc #noncompete #hrcompliance #confidentiality #nonsolicitation #hrbestpractices

🚨 Major Update from the FTC: Ban on Noncompete Agreements 🚨 On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a transformative rule that will ban noncompete clauses in nearly all employment contracts across the United States. This rule is set to take effect 120 days after its official filing in the Federal Register. What does the rule say? •Broad Prohibition: The rule prohibits any employment terms that restrict employees from seeking work or operating a business post-employment, applicable nationwide. •Immediate Impact: From the effective date, new noncompete clauses will be banned, and almost all existing clauses (except those involving senior executives) will be invalidated. •Employer Action Required: Employers are required to inform most employees that their existing noncompete agreements will no longer be enforceable. 🔍 Challenges and Uncertainty: The day after the announcement, the U.S. Chamber of Commerce initiated a lawsuit challenging the FTC’s authority to enforce this rule. This introduces a layer of uncertainty as we might see additional legal challenges. 🛠️ Strategic Considerations for Employers: •Review Existing Agreements: Ensure compliance by reviewing all current employment contracts for noncompete clauses. •Consider Alternatives: Explore other protective measures like nondisclosure agreements to safeguard business secrets without overstepping new legal boundaries. •Stay Informed: Given the potential for ongoing legal developments, keeping up-to-date with the latest information is crucial. 🌟 Enhance Your Compensation Plan: In response to these changes, strengthening your compensation package can be a key strategy to attract and retain top talent without relying on noncompete clauses. Our team specializes in designing attractive employee benefits plans that can make your company a preferred employer. If you're looking to review or enhance your benefits offerings, we’re here to help! 💬 I'd love to hear your thoughts on this significant change. How is your organization preparing for the shift? Are there strategies you are considering to adapt to this new landscape? #FTCRuling #NonCompete #HRLeadership #BusinessLaw #WorkplaceChange #EmployeeBenefits #HumanResources