🔥YOU'RE FIRED, Non-Competes

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Good morning. The FTC (Federal Trade Commission) protected 30 million people in the US workforce who are covered by noncompete agreements when they voted to ban that agreement type on Tuesday - about 18% of the workforce.

Everything you need to know below:

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“It is so profoundly unfree and unfair for people to be stuck in jobs they want to leave, not because they lacked better alternatives, but because noncompetes preclude another firm from fairly competing for their labor, requiring workers instead to leave their industries or their homes to make ends,” FTC Commissioner Rebecca Slaughter (D) said in prepared remarks.

Although the FTC effectively voted 3-2 to ban noncompete agreements, the future of the ban is in limbo. Big business and groups alike who oppose the rule are expected to take legal action to block its implementation.

Business groups claim these agreements protect proprietary information and intellectual property, although the rule would not ban NDAs and confidentiality agreements. The U.S. Chamber of Commerce, the largest pro-business lobbying group in the country, has said it will sue to block the rule.

Next Steps:

• The new rule goes into effect 120 days after it’s published in the Federal Register.

• New noncompete agreements will be banned for all workers.

• Companies must let current and past employees know they won’t enforce them.

• Companies must throw out existing noncompete agreements most employees. Under certain circumstances, the agreements may remain in effect for senior executives.

_{Written by Bailey Hepler}

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