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Huge Change in Employment Law Nationwide   On April 23, 2024, the Federal Trade Commission (FTC) adopted a final rule banning the use of noncompete agreements for nearly all employees nationwide. Noncompete agreements essentially prevent employees from joining competing firms immediately after their employment ends. The rule is to take effect in four months (120 days) unless it is blocked by legal challenges, which have already been filed.   Supporters argue that noncompetes protect business investments and proprietary information. Critics believe they stifle innovation and unfairly limit worker mobility. Noncompete clauses have long been a topic of debate, balancing protection for businesses with freedom for individuals to move between jobs without restrictions. The implications of this rule could be far-reaching, potentially altering hiring practices and employee retention strategies across various industries. This proposed change could shift the competitive landscape, potentially boosting job mobility and innovation but also raising concerns among business owners about protecting proprietary information and investments in employee development. #EmploymentLaw #NoncompeteAgreements #Business #HR #Innovation

The FTC has banned non-competes -- now what? Employment attorney Jessica Buonaccorsi Summers presented a webinar last week on the new rule, plus state and local legislation limiting the use of non-competes, and options for small businesses to protect their interests and information in light of recent developments. You can watch the webinar here: https://lnkd.in/eSQamn3B #noncompetes #ftc #employmentlaw

𝐓𝐡𝐞 𝐔𝐒 𝐅𝐞𝐝𝐞𝐫𝐚𝐥 𝐓𝐫𝐚𝐝𝐞 𝐂𝐨𝐦𝐦𝐢𝐬𝐬𝐢𝐨𝐧 𝐣𝐮𝐬𝐭 𝐝𝐫𝐨𝐩𝐩𝐞𝐝 𝐚 𝐛𝐨𝐦𝐛𝐬𝐡𝐞𝐥𝐥, 𝐯𝐨𝐭𝐢𝐧𝐠 𝐭𝐨 𝐛𝐚𝐧 𝐧𝐨𝐧-𝐜𝐨𝐦𝐩𝐞𝐭𝐞 𝐚𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭𝐬. Here are 3 key takeaways you need to know: 1️⃣ 𝐅𝐫𝐞𝐞𝐝𝐨𝐦 𝐭𝐨 𝐅𝐥𝐨𝐮𝐫𝐢𝐬𝐡: Say goodbye to shackles on your career! This ban liberates employees, allowing them to pursue new opportunities without fear of legal repercussions. It's a win for job mobility and personal growth. 2️⃣ 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐋𝐢𝐛𝐞𝐫𝐚𝐭𝐢𝐨𝐧: Non-competes aren't just job-limiting, they're innovation-killing. By axing these agreements, we're unleashing the potential for fresh ideas and entrepreneurial ventures, boosting both wages and creativity. 3️⃣ 𝐋𝐞𝐠𝐚𝐥 𝐁𝐚𝐭𝐭𝐥𝐞𝐬 𝐁𝐫𝐞𝐰𝐢𝐧𝐠: While the FTC's move is a game-changer, it's not without resistance. Industry heavyweights are gearing up for legal warfare, citing concerns about trade secrets and business operations. The courtroom showdown adds a layer of suspense to this historic decision. This ban isn't just about contracts — it's about empowerment, innovation, and a fairer workplace. 🚀 #NonCompeteBan #InnovationUnleashed #MedicalDevice full article: https://lnkd.in/e6uePpEA

An estimated 18% of U.S. workers are subject to non-competes, and this new FTC rule will affect every one of those employees and their employers. The new rule effectively bans any new non-compete agreements, and it even impacts existing employment agreements that contain non-compete restrictions by requiring employers to notify employees that those non-compete restrictions are no longer enforceable. Employers across the country will need to closely monitor this new rule and the anticipated legal challenges to it.

Breaking News: The Federal Trade Commission issued the Non-Compete Clause Rule, calling for a comprehensive ban on #noncompetes nationwide, concluding non-competes are an “unfair method of competition and therefore a violation of Section 5 of the Federal Trade Commission Act.” Threats of legal challenges have surfaced. Just hours after the final rule, which would go into effect later this year, the U.S. Chamber of Commerce announced it would sue the FTC to block the rule from going into effect. Our Adams and Reese attorneys Matt Jackson, Timothy Brinks, Hunter Schoen, and Evan Gaudet discuss the requirements under the FTC rule and alternative measures that employers can implement to protect their #business interests in light of the rule taking place. Read more >> https://lnkd.in/gxGj8yAR #EmploymentAgreements #FTC #FinalRule #NonCompeteAgreements #Employers #LaborLaw #TradeSecrets #ConfidentialityAgreements

The recent ruling by a Texas court to overturn the FTC's proposed ban is a significant development for both companies and employees. Initially set to go into effect on September 4th, this ban would have dramatically altered the landscape of non-compete agreements and other restrictive covenants. For companies, this means they can continue to protect their business interests through non-compete clauses, which help safeguard trade secrets and client relationships. However, it also underscores the importance of ensuring these agreements are fair and enforceable under state laws. For employees, this ruling highlights the ongoing debate about the balance between protecting business interests and ensuring fair opportunities for career advancement. While the ban would have opened new doors for many workers, its overturning maintains the status quo, emphasizing the need for employees to carefully review any non-compete agreements they enter. This is a pivotal moment that will likely influence future discussions and regulations on employment contracts across the country. #noncompete #ftcban #employment #contracts

I'm not expecting many people to read all 570 pages of the recent rule by the Federal Trade Commission on non-competition covenants. You may not need to. It's going to be up to the courts to determine if the FTC has authority to make the rule. However, you do need to consider what protections your business needs. An agreement to not compete in general isn't a practical option for most businesses. For many businesses, the cost, time, and effort of litigation to enforce a restriction isn't worth it. Also, if the employee doesn't violate the restriction, your business has still lost its investment in that employee. The best protection is having a business your good employees don't want to leave. Plus, it's more fun to help people be happy. Feel free to reach out to me or Eric Bass at Venn Law Group to talk about options for keeping employees you want to keep as well as options for employees who aren't a good fit for your business. https://lnkd.in/gfqBcy84 #FTC #noncompete #nonsolicitation #employeeincentives #employeeretention

For decades, #noncompete agreements have been a commonplace tool for businesses to protect trade secrets and prevent employees from taking sensitive information to competitors. However, the Federal Trade Commission (#FTC) has now proposed a sweeping new rule that could upend this practice across most U.S. workplaces. Susanna Visconti discusses the potential impacts on #employers and #employees. https://lnkd.in/gduiAAjM

On April 23, 2024, the Federal Trade Commission (FTC) adopted a rule banning employers from using non-competes with nearly all employees in the United States. Join Gunderson Dettmer Employment & Labor Partner Max Perlman and Strategic Transactions & Licensing Partner Aaron Rubin as they discuss this sweeping, nationwide regulation that extends to other types of agreements. Key Takeaways include: • What the Rule Covers and Whom It Impacts • The Rule’s Timing and Notice Requirements • Legal Challenges to the Rule and Possible Outcomes • Next Steps for Employers: What to do Right Now • Strategies to Protect Your Business Interests, with or without Non-compete Agreements Register here. https://bit.ly/4blguLw #FTC #Webinar #NonCompetes

Important news for the businesses in our network On April 23, 2024, the Federal Trade Commission (FTC) announced a ban on noncompete agreements. This decision is set to reshape employment landscapes, impacting both new and existing contracts. Unless delayed, the ban is set to take effect in just 120 days. Following the FTC ruling, there are several steps that businesses need to take: 1️⃣ Audit employment agreements to pinpoint affected noncompete clauses. 2️⃣ Consider potential contract revisions to comply with upcoming regulations. 3️⃣ Develop plans to clearly communicate these changes and their implications to the workforce. 4️⃣ Review employee retention policies. Our firm is closely monitoring the situation and is here to guide you through these changes. Let us help ensure your employment contracts and retention strategies are up-to-date and fully compliant. We are in the process of preparing a more detailed update on this topic that we will release shortly. Visit our website to learn more or give us a call if you have any questions. https://lnkd.in/e-mES4U8 #meridianlaw #meridianlawpllc #banonnoncompetes #FTCnoncompeteban