Last year, the Federal Trade Commission (FTC) implemented a new Noncompete Clause Rule that banned all noncompete clauses (except for senior executive contracts).
In fact, the rule also nullifies existing noncompetes for all employees except senior executives and makes them unenforceable. Employers were required to inform their employees of these changes.
Why this matters
Very restrictive noncompete agreements can deter applicants. Gone are the days when employees remained at the same company for decades until retirement. Today, people expect to stay a few years with the their employer and then move up the career ladder at their next employer. Having to adhere to strict, career-stifling noncompetes can lower the quality of applicants to your business or organization.
Compliance is mandatory
Ideally, all businesses will by now have updated all their workplace documents and company handbooks to ensure the changes in the noncompete agreements are reflected. Failing to update all the company documents could open the door to possible litigation.
Another consequence of failure to update documents is the unfavorable impression of your company by potential clients or job seekers. Those wanting to be on the cutting edge of their industries will recognize this as a failure to adapt to changes. That’s not the impression you want others to have of your organization.
Assure compliance with a document review
If you have concerns about your company’s compliance, scheduling a legal review of your documents can mitigate any fallout and provide you with the peace of mind you need to excel in your industry.
