Last week, the Federal Trade Commission (FTC) issued a final rule to ban non-compete clauses in employee’s contracts nationwide. Under the FTC’s new rule, existing non-competes for the vast majority of workers will no longer be enforceable after the rule’s effective date. Existing non-competes for senior executives can remain in force under the FTC’s final rule, but employers are banned from entering into or attempting to enforce any new non-competes, even if they involve senior executives.
Mountain Home attorney Roger Morgan says it was a little stunning to see the FTC announce the ruling.
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Morgan expects the rule to be in for a court battle.
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The local attorney says the new rule is something that can be beneficial for employees. A recent example of someone dealing with a non-compete was well publicized.
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Morgan says typically, there are two types of non-competes that are used locally.
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The final rule will become effective 120 days after publication in the Federal Register.
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