Eric Akira Tate authored an article for HR.com discussing the Federal Trade Commission (FTC) proposing a new “Non-Compete Clause Rule,” which would ban employers from imposing non-compete clauses on their workers in the United States.
“If implemented, the FTC noted that its new rule would make it illegal for an employer to enter into or attempt to enter into a non-compete with a worker, maintain a non-compete with a worker, or represent to a worker, under certain circumstances, that the worker is subject to a non-compete,” Eric wrote.
He added: “While the outlook is uncertain, employers would be well advised to take a comprehensive look at not only their restrictive covenant agreements for compliance concerns, but their trade secret and information security processes and programs in the event that non-competes at some point are no longer available or available to the same extent to protect the business.”
Read the full article.