If I have an existing non compete — what does this mean for me ? Is it invalid?
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FTC announces rule banning noncompetes
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Re: FTC announces rule banning noncompetes
#22If I have an existing non compete — what does this mean for me ? Is it invalid?
> Instead, under the final rule, employers will simply have to provide notice to workers bound to an existing noncompete that the noncompete agreement will not be enforced against them in the future. To aid employers’ compliance with this requirement, the Commission has included model language in the final rule that employers can use to communicate to workers.
> Under the final rule, existing noncompetes for senior executives can remain in force. Employers, however, are prohibited from entering into or enforcing new noncompetes with senior executives. The final rule defines senior executives as workers earning more than $151,164 annually and who are in policy-making positions.
> The final rule will become effective 120 days after publication in the Federal Register.
Re: FTC announces rule banning noncompetes
#23> Under the final rule, existing noncompetes for senior executives can remain in force. Employers, however, are prohibited from entering into or enforcing new noncompetes with senior executives. The final rule defines senior executives as workers earning more than $151,164 annually and who are in policy-making positions. Lot's of devs will be surprised to discover they are in policy making positions.
New policy: no more non-competes
Re: FTC announces rule banning noncompetes
#24This seems incredibly important. I know non-compete rules personally held me back at a previous tech job.
I'm interested to see how this hits finance firms – I know people who were forced to take a year off between jobs (although they were compensated the whole time). Always thought that would be a pretty sweet deal.
Re: FTC announces rule banning noncompetes
#25If I have an existing non compete — what does this mean for me ? Is it invalid?
Going off of the press release, it doesn't go into effect until 120 days after publication and doesn't apply to current senior executives which are defined as "workers earning more than $151,164 annually and who are in policy-making positions." I would also imagine that it will immediately be challenged in court.
Re: FTC announces rule banning noncompetes
#26The U.S. Chamber of Commerce is likely to file suit: https://www.uschamber.com/finance/antitrust/chamber-comments...
Re: FTC announces rule banning noncompetes
#27My attorney friends tell me that the FTC doesn't really have the ability to do this, since contract law is part of state law. (My poor paraphrasing, not theirs.) I've been surprised I haven't seen this mentioned on social media or in the news. Are my friends wrong, or are people celebrating because this is just a step in the right direction even if it may not do anything yet?
It is both true that the FTC's mandate is broad enough to include this and that this might get successfully challenged in the courts.
Re: FTC announces rule banning noncompetes
#28> Under the final rule, existing noncompetes for senior executives can remain in force. Employers, however, are prohibited from entering into or enforcing new noncompetes with senior executives. The final rule defines senior executives as workers earning more than $151,164 annually and who are in policy-making positions. Lot's of devs will be surprised to discover they are in policy making positions.
Unlikely they are in a policy making position.
Re: FTC announces rule banning noncompetes
#29It's about time! Nice to hear some good news for a change!
Re: FTC announces rule banning noncompetes
#30I suspect this is bad for California, its lack of noncompetes was a huge differentiation for a while.
(how bad? I don't know.)