The recently enacted FTC non-compete ban is poised to transform employment law for employers and employees by prohibiting non-competes in contracts and voiding previously existing non-compete clauses in employment contracts. Non-competes impact the vast majority of United States employees and businesses, so this recent law change is essential to understand for employees and employers alike.
As a thought leader and legal commentator on all aspects of employment law, my passion is empowering employers and employees to evolve alongside employment law changes and stay ahead of the curve. Let’s dive into this change and its implications.
Related Article: The Future of Non-Compete Agreements; A Potential FTC Ban
Recently Enacted FTC Non-Compete Ban Transforms Employment Law
On January 5, 2023, the United States Federal Trade Commission (FTC) proposed a new rule to ban employers from enforcing non-compete clauses on employees and invalidate all existing non-competes. On April 23, 2024, the FTC issued a final rule and enacted it.
This FTC non-compete ban will prohibit non-competes nationwide, increasing an employee’s fundamental right to change jobs, increasing motivation and engagement within businesses, and promoting the creation of new businesses. This new rule also voids existing non-competes.
Employers must also provide clear, conspicuous notice to employees working under non-compete agreements. This notice must be sent via individualized communication (text message, hand delivery, mailed to last known address, etc.) informing them this clause is no longer enforceable.
This law change prohibits employers from entering or attempting to enter into non-compete agreements with their employees or suggesting such a clause exists. Still, like with all aspects of employment law, the devil is in the details, and there are some exceptions to note. For example, existing non-competes can remain in force for senior executives.
With this newly-emerged risk of penalties, fines, and other consequences, businesses and employees must understand the nuances of this change and how it will affect them and their contracts.
Related Article: CA Labor Laws for 2024, Part 4: SB 699 & AB 1076
Thought Leader & Legal Commentator on FTC Non-Compete Ban
Changes to employment law have a huge influence on the work environment and culture that employers and employees must operate within. Understanding these recent shifts is not a luxury. It is essential for businesses to have a firm grasp of these law changes to avoid liability, lawsuits, and costly mistakes, and it is crucial for employees to understand their rights. As a thought leader and legal commentator on the FTC non-compete ban, other law changes, and all aspects of employment law, I am uniquely positioned and qualified to provide expert insight and analysis on all employment law issues. These issues can be complex, so you need a seasoned legal professional to shed light on them. My passion is being a beacon in uncertain times of transition that provides that light.
Legal Commentary on the FTC Non-Compete Ban and Other Breaking Employment Law News
I am a former employment and labor law attorney turned mediator, ADR, and conflict resolution specialist who believes it is crucial to stay current with groundbreaking changes to employment law for employees and employers alike. My passion is educating the general public on recent developments in employment law and the workplace trends that impact them as a thought leader and legal commentator. As such, I am uniquely qualified to discuss the recent FTC non-compete ban and all aspects of employment law. My more than 20 years of experience as a media legal analyst and contributor have led to my own radio show on Tavis Smiley’s KBLA Talk 1580, “Legal Lens with Angela Reddock.” I also am a regular speaker and blogger on employment law and issues related to the workplace.
Also, learn more about my book – The Workplace Transformed: 7 Crucial Lessons from the Global Pandemic – here – https://angelareddock-wright.com/book/.
For media inquiries, please reach out to josh@kwsmdigital.com.
For more information regarding mediation and dispute resolution resources for both employees and employers, connect with let’s connect on LinkedIn for new updates or contact me here. You may also follow me on Instagram.
This communication is not legal advice. It is educational only. For legal advice, consult with an experienced employment law attorney in your state or city.