FTC Non-Compete Rule Change – Brings Significant Changes for Businesses – Chamber Member HR Experts Weigh In
July 17, 2024 – CHAMBER HR – CHUMPCAP
The Federal Trade Commission’s new non-compete rule, which goes into effect on September 4th, will bring significant changes for many businesses. Most businesses will be prohibited from entering into non-compete agreements with their workers and existing non-compete agreements, other than a narrow exception for certain senior executives, will no longer be enforceable. Businesses must also inform workers that their existing agreements will be void. Despite ongoing lawsuits that could delay or halt the rule’s implementation, it is still currently scheduled to take effect on September 4th, 2024. While non-compete agreements will now be barred, there are still other mechanisms available to protect your business’ interests, including non-disclosure and non-solicitation agreements.
Businesses should proactively prepare for these changes by reviewing and updating organizational policies to ensure compliance. Transparent communication with employees who currently have non-compete agreements is essential to clarify how these changes will impact them. The Southington Regional Chamber of Commerce recommends seeking guidance from an employment attorney or Human Resources professional to modify policies and implement alternative protective measures.
Businesses needing additional support may contact Southington Regional Chamber of Commerce at 860.628.8036. This article is a collaboration of the Southington Regional Chamber of Commerce and Chamber Member Industry Experts at the Law Offices of Allie Levene and EGage Human Resources & Safety Consulting.