Remember my post a few weeks ago asking how you’d feel if NONCOMPETES WENT AWAY???
Well, THEY JUST DID!!!
Sort of 🤷🏽♂️
Yesterday, the Federal Trade Commission announced a new final rule effectively banning noncompetes in most circumstances.
Here are the key points:
▪️ The new rule is NOT immediately effective and does not take effect until August.
▫️You will no longer be able to enter into non-compete clauses with any workers.
▪️You can no longer enforce existing non-compete agreements – unless they cover certain senior executives (workers earning more than $151,164 annually and who are in policy-making positions)
▫️You must provide explicit notice to BOTH current and former employees that their non-competes are no longer enforceable.
▪️Existing noncompetes before can still be enforced against Senior Executives.
▫️You do not need to take active steps to formally rescind existing non-competes.
▪️Noncompetes during the bona fide sale of a business or the sale of someone’s ownership interest are STILL ALLOWED.
Of course, the new rule is already being challenged in court, so we will have to wait and see for the final outcome.
⚠️ But, for now … be VERY CAUTIOUS and reach out to competent counsel if you have any questions about noncompetes (because I am most definitely NOT your lawyer and this is not legal advice unless you hire me 😉 ).
🔗 to FTC’s fact sheet and the final rule in the comments.
#lawyers #competition #careers
VP Customer Success at Upstart | Global Customer Experience and Operations Executive (Services, Success, Sales Engineering, Support) | Ex Google, Intercom, Microsoft
4moLong overdue... like one of the ridiculous things that we'll read about in 50 years such as "In Alaska, It's illegal to push, view, or give beer to a moose from a plane" I see a very slim use case for the most senior executives (CEO-1, CEO-2) and companies should pay for this privilege through extended gardening leave with full pay and benefits. I am sure it will face a fight. Why the US Chamber of Commerce is fighting I don't know... but I guess they need to find something to do.