In a recent landmark vote, the Federal Trade Commission (FTC) banned nearly all existing and future noncompete agreements. The FTC has long argued that binding noncompete agreements are an unfair method of competition under Section 5 of the FTC Act. For employees, understanding the details of this new regulation and knowing the necessary steps to take is crucial, as the new rule will significantly reshape the employment landscape. Who Will Be Affected? The FTC’s ban
Read More... →The Federal Trade Commission (FTC) recently voted to ban almost all existing and future noncompete agreements. The Final Rule states that noncompetes are considered an unfair method of competition that violates Section 5 of the FTC Act. The ban will not apply to noncompetes held by senior executives. The Final Rule defines a senior executive as someone earning more than $151,164 annually and holds a policy making position. The ban will also not apply to
Read More... →The Federal Trade Commission (FTC) has announced that it will vote on a proposed rule that would ban most noncompete agreements for employees. If passed, the FTC predicts the new rule would increase employee wages and expand career opportunities. The noncompete ban would apply to paid or unpaid employees, as well as independent contractors. The ban would make it unlawful to enter into, attempt to enter into, or maintain the enforceability of noncompete agreements. Employers
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The New York State Senate has successfully passed a bill that aims to prohibit the use of non-compete agreements within the state to safeguard every employee’s future employment opportunities. The bill, S.3100A, if signed into law, will effectively curb employers from imposing restrictions that hinder their employees’ mobility, without unduly impeding businesses from protecting proprietary information through alternative means such as confidentiality agreements and non-solicitation agreements. According to State Senator Sean Ryan, who has championed
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At the end of its recent session, the Maryland legislature passed two new pieces of employment legislation for Governor Wes Moore’s signature. In its long-running efforts to implement family leave, the legislature passed Senate Bill 828, which is a modification to the Time to Care Act that governs Maryland’s new Family and Medical Leave Insurance Program. The bill would delay the start date and make administrative changes to the program. The legislature also sought to
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