Weston Hurd’s Post

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

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

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

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

Non-compete agreements for employees are soon to be banned in the US. This means employees will be free to work for competitors after leaving their current job. However, this doesn't necessarily mean non-compete agreements between companies will also be banned. It is yet to be seen if the rest of the world will follow the US's lead in banning non-compete agreements for employees. What do you think? Will this trend continue? #noncompete #employmentlaw #businessnews

WHAT I LEARNED IN HR: NO MORE NON-COMPETES? This is big. US employers may soon be prohibited from entering or enforcing noncompete clauses, according to a final rule passed by the Federal Trade Commission. The US Chamber of Commerce has already indicated its intent to challenge the new rule in court. If this rule goes into effect, it will be an unfair method of competition for an employer to enter or maintain a noncompete agreement with any employee, except for senior executives. The new rule also requires employers to rescind existing noncompete agreements and actively notify workers that they are no longer in effect. The FTC estimates that banning noncompete agreements would cost employers $250 billion to $296 billion per year in increased compensation expenses. This new rule does not apply to agreements banning employees from soliciting your employees or disclosing or using your trade secrets. Stay tuned. #NoncompeteAgreements #FTC #LaborMarket #Competition