As you may have heard, there have been some key developments recently regarding the legality of non-compete agreements.
Given that this news will have implications for businesses across the United States, I wanted to reach out with an overview of the situation:
- Earlier this year, the Federal Trade Commission (FTC) proposed banning companies from enforcing non-compete agreements as part of their employment arrangements.
- While that proposal remains pending, the National Labor Relations Board (NLRB) recently released a memo stating that it found non-compete agreements to violate labor laws unless “narrowly tailored.”
- All of the activity around noncompete agreements is not limited to the federal level. Several states have already adopted legislation rendering certain non-compete agreements invalid, and new legislation has been proposed in New York, New Jersey, and Minnesota.
- While this may be a positive sign for the just-under one in five U.S. workers impacted by such arrangements, many businesses now find themselves wondering how to best protect their intellectual property from the impacts of employee turnover.
- With changes pending and pronouncements potentially still to come, it’s important that business owners and operators reevaluate their current employment contract procedures to remain compliant with any required alterations or impacts. Whether a contract is compliant – at least at this time – is likely to be on a case-by-case basis, so it’s worth individual review by an attorney.
On that note, if you have questions about your existing contracts or would like one of our professionals to review them for compliance, please do not hesitate to respond to this email or give the office a call.
As always, our team of legal experts is here to help you navigate the business law landscape with confidence and clarity.
Ravosa Law Offices, PC 