John Hagan’s Post

What will the FTC's Final Rule on Noncompete Agreements mean for employers? Read more about steps to consider should the final rule go into effect in this e-update by Weston Hurd partner Russell Rendall. https://lnkd.in/gGTSxq-A #noncompeteagreements #laborandemploymentlaw

The FTC Noncompete Ban is still set to take effect Sept. 4 and invalidates nearly all existing noncompete agreements and bars employers from entering into future agreements. Here's what you need to know! #laborlaw #HR https://lnkd.in/eErUiFuY

Big news for individuals and business owners alike! The FTC has banned noncompete clauses, meaning significant changes are coming our way in the next few months. At #TriNet, we've been keeping a close eye on this development and have been providing proactive resources and guidance to our clients. We want to ensure our clients are prepared to navigate this ever-changing business landscape. If you're re-evaluating your HR best practices or simply curious about how we ensure compliance, let's chat! https://lnkd.in/gE7pFB5N

The fine print can only be read only if held up to a mirror. The ban on noncompete agreements is turning out to be non-straightforward. Uncertainty is rising over whether employers can require workers to sign noncompetes following legal challenges in two states to the FTC ban that is set to take effect in September. Chances are we've all seen them and signed them - noncompetes. They're usually included in that avalanche of paper and digital disclosures employers requires employees to sign on Day 1. One in five workers, or 30 million people, are restricted by noncompete agreements, which are employment contracts that limit the ability of employees to work for competitors or even start their own businesses. Because of their 'blanket' use by employers, the problem is they can apply to a wide range of employees from those earning minimum wage to CEOs. For employees, noncompetes can reduce innovation, inhibit wage and economic growth, and trap workers. In practice, they can be used to prevent those in the workforce from, say, moving to a competitor or realistically, anywhere without the approval of the previous employer under which the agreement was signed. For employers, the argument is that without noncompetes, companies could face challenges like protecting confidential information and competition for skilled employees. That's exactly the argument on which the legal challenges are being made. In many states including California, Minnesota, Oklahoma and North Dakota, noncompetes have already been banned, and at least a dozen other states have passed laws limiting their use. But, that has stopped employers from continuing to include them in employment documents. A total ban on noncompetes doesn't make much sense especially for rank-and-file and lower-wage workers. But they do in certain ways for senior executives and corporate leaders. Those noncompetes, however, are typically negotiated. Unless you're already in a state that deems them unforceable, noncompetes remain in economic limbo until this gets sorted out. And even then, there will be plenty of companies competing to file the next injunction https://lnkd.in/gRWVjATM #workers #ftc #noncompete #workplace #employees #employers #business #wages #career #workforce

There’s been a shakeup for non-compete agreements. Here’s what employers need to know… On April 23rd, the Federal Trade Commission issued a final rule banning most non-compete agreements between workers and employers. This is a major change, and it's likely to have a big impact on how companies handle employee departures. What can employers do now? Employers should take stock of their existing non-compete agreements to determine which are still enforceable for senior executives under the new rule.  They'll also need to send notices to non-exempt workers informing them their non-competes are no longer valid, and explore alternative options like nondisclosure agreements to protect sensitive information. This is a complex issue, and it's still unfolding. Follow for updates! #FTC #NonCompete #EmploymentLaw #WorkplaceLaw

Attention employers! The FTC's new rule banning most noncompete agreements takes effect Aug. 21, 2024. What does this mean for your business? Learn about the changes and strategic recommendations in our latest article. #NoncompeteBan #HumanResources

Attention employers! The FTC's new rule banning most noncompete agreements takes effect Aug. 21, 2024. What does this mean for your business? Learn about the changes and strategic recommendations in our latest article. #NoncompeteBan #HumanResources

Attention employers! The FTC's new rule banning most noncompete agreements takes effect Aug. 21, 2024. What does this mean for your business? Learn about the changes and strategic recommendations in our latest article. #NoncompeteBan #HumanResources

To address these problems, the FTC’s proposed rule would generally prohibit employers from using noncompete clauses. Specifically, the FTC’s new rule would make it illegal for an employer to: enter into or attempt to enter into a noncompete with a worker; maintain a noncompete with a worker; or represent to a worker, under certain circumstances, that the worker is subject to a noncompete. The proposed rule would apply to independent contractors and anyone who works for an employer, whether paid or unpaid. It would also require employers to rescind existing noncompetes and actively inform workers that they are no longer in effect.👍👏

Attention employers! The FTC's new rule banning most noncompete agreements takes effect Aug. 21, 2024. What does this mean for your business? Learn about the changes and strategic recommendations in our latest article. #NoncompeteBan #HumanResources