Fair Play in Employment: The Rise and Fall of Noncompetes
The Federal Trade Commission approved a new rule that could render nearly all non-compete clauses illegal nationwide, representing a major shift towards a more equitable job market. However, the rule faces legal challenges, and employees cannot assume their non-competes are currently invalid without written notice from employers. The rule has a narrow exception for highly compensated senior executives with policy-making roles. It also does not impact other restrictive covenants like non-disclosure or non-solicitation clauses. While momentum is growing against non-competes, with some states enacting limitations, employees should remain mindful of their employment agreements until the legal landscape becomes clearer. Experienced guidance is advised for navigating this evolving area of employment law.
