My RIA Lawyer’s Post

Noncompete clauses were banned by the FTC this week. Here's what employees need to know: 👤 Who does it apply to? It applies to most workers, including employees and independent contractors. ❌ Who isn’t covered? 1. Execs in a “policymaking role” making $151,165+ 2. Noncompetes entered into after an acquisition 3. Industries outside the FTC’s jurisdiction, like banks, airlines, and nonprofits 📅 When does it start? The ban takes effect 120 days after being published in the Federal Register, which hasn't happened yet. 🖊️ What if I already signed a noncompete? If the law applies to you, the noncompete will be void. ⚖️ Is it facing legal challenges? Yes, there is already a lawsuit brought by the U.S. Chamber of Commerce and the Business Roundtable, which also fought NYC’s salary transparency law. 🤫 What about NDAs or “non-solicitation” clauses? Unless the terms are so broad they effectively prevent working elsewhere, those still apply. 💼 What should employees do? Don't violate your agreement until the effective date passes. When it does, your employer should post a “clear and conspicuous notice” that existing noncompetes are no longer enforceable. 🦾 How might this affect innovation? Noncompetes affect an estimated 1 in 5 working adults. In addition to preventing employees from moving to a competing employer, they also limit their freedom to open a new business that could be threatened by a noncompete lawsuit. The FTC expects the noncompete ban to increase new business formation across the U.S. by 2.7%, or 8,500 additional businesses each year. --- What about you? What kind of career would you choose to build if you were free to work on anything?

Important news for businesses and employees! The FTC has banned noncompete agreements. Learn more about what this means for your business and employees in this informative article. #business #smallbusiness #noncompete #FTC https://lnkd.in/eZxHyx25

Great overview of the new legislation on non compete clauses and what it means for employees from Ben Jackson:

A reminder if you're an employer in CA that had a non-compete agreement, you must have notified current and former employees of void non-compete agreements by February 14, 2024. #noncompete #noncompetes #agreements #void #humanresources #humanresourcesconsulting #compliance

Business Owners Alert! - The FTC has voted to approve a new rule banning non-compete clauses with employees. Under the new rule, non-competes for employees will not be enforceable after the effective date. Senior-level executives, however, will still be subject to the non-compete clause they may have signed, but the company can’t create a new non-compete or modify the current one. #smallbusiness #employmentlaw

I’m sure this will bring legal challenges from many. It is of my own opinion that noncompete agreements in the equipment, industry or nothing more than ball and chains around someone’s feet to keep them trapped, manipulate their commission structure, and change the commission structure to favor the employer at at any given time. What’s even more interesting is how some equipment companies will try and recruit you and encourage/ demand you to bring a book of business, only to hire you and demand that you sign a noncompete agreement.

The FTC estimates that 1 in 5 people are bound by a non-compete clause in their current jobs. These legal agreements or clauses block an employee from working for a competing employer for a specified time. On Tuesday, April 23, the Federal Trade Commission (FTC) ruled effectively banning non-competes for most employees. This will prevent for-profit employers from issuing new non-competes to anyone, making existing agreements unenforceable after the rule’s effective date. To learn more about this, click below (⤵️) to visit my blog!

Non-Competes In New York Are Banned! Not quite yet, but as soon as NYS Governor Hochul signs Bill No. S3100A. Truth be told, there has always been confusion over whether or not non-competes were legally binding on an employee in the first place. An article yesterday from Schwartz Sladkus Reich Greenberg Atlas LLP Senior Counsel Robert Gosseen has gone a long way toward clarifying things. The New York Bill Banning Non-Competes: What You Need To Know 'This past June the New York State legislature passed a bill (Bill No. S3100A) barring virtually all non-compete agreements for all workers, regardless of salary or job function (in other words, from KFC fry cooks to CEO’s). The Governor has announced that she will sign the bill, but hasn’t yet done so. When and if she does, the bill will become law 30 days after signing and make any non-compete agreement signed or modified after the law’s effective date unlawful. The law would not be retroactive, however...' Read the rest of the article here: https://lnkd.in/eKVqaZHg #employmentlaw #laborlaw #noncompete #NewYork #humanresources #business #smallbusiness #law #legal Jeffrey Schwartz Jarrett Roth Allen Turek Astra Tudisco David Alin Kelly Kulak Jen Barash Jeffrey Reich