Best Business Attorneys in Mansfield, OH

DO YOU HAVE NON-COMPETE AGREEMENTS WITH YOUR EMPLOYEES? All employers who currently have non-compete agreements with their employees should stay tuned to a newly proposed law. The Federal Trade Commission (“FTC”) opened a public comment period on a proposed new rule that would ban employers from imposing non-competes on their workers. The rule would make it illegal for an employer to enter into or attempt to enter into a non-compete with an employee, maintain a non-compete with an employee or represent to an employee, under certain circumstances, that the employee is subject to a non-compete. It would apply to independent contractors and anyone who works for an employer, whether paid or unpaid. The proposed rule would also require employers to rescind existing non-competes and inform workers that the non-competes are no longer in effect. The FTC added that the proposed rule would “generally not apply to other types of employment restrictions, like non-disclosure agreements” but said “other types of employment restrictions could be subject to the rule if they are so broad in scope that they function as non-competes.” If the proposed rules are adopted, they would not become effective for at least 240 days, and then will most likely face a number of legal challenges. Nonetheless, employers should start preparing to see some form of non-compete legal reform.