On January 5, 2023, the Federal Trade Commission (“FTC”) issued a Notice of Proposed Rulemaking (“NPRM”) to prohibit employers from entering into post-employment non-compete agreements with workers. The proposed rule, if adopted, would essentially ban non-compete agreements nationwide, with very limited exceptions. The FTC will soon publish the NPRM in the Federal Register, triggering a 60-day public comment period. Here are answers to some of the key questions employers may have about the proposed rule.
Continue Reading FTC Proposes Rule that Would Ban Almost All Non-Compete Agreements Across the United States
Non-Competition Agreements
Non-Competes May Become a Thing of the Past Across the Nation
On July 9, 2021, President Biden signed an Executive Order which directed the Federal Trade Commission to curtail the use of non-competes nation-wide in order to help promote competition and expand the economy. At the moment, only three states forbid the use of non-compete clauses in employment agreements: California, North Dakota and Oklahoma. Nearly one dozen states – including Massachusetts – have put tough restrictions on the use and enforcement of non-compete agreements irrespective of which employees are required to sign same.
Continue Reading Non-Competes May Become a Thing of the Past Across the Nation
NH Joins Ban on Non-Competes for Low-Wage Employees
Following both Massachusetts and Maine, New Hampshire will prohibit non-compete agreements for employees who earn an hourly rate that is equal to or lesser than double the federal minimum wage. The federal minimum wage, which NH follows, is $7.25 per hour. This means that employers cannot require employees who make $14.50 per hour or less…
Non-Compete ‘Reform’ Filed in Massachusetts Senate
The currently pending Senate proposal S.2625 – so-called non-compete “reform” legislation – was filed on Monday, July 23, 2018, in the Massachusetts Senate. It is not a stand-alone piece of legislation, but instead is buried deep within a $600 million appropriations bill which was issued from the Senate Ways and Means Committee. It would change…
The State of Non-Compete Agreements in Massachusetts
Non-compete agreements continue to be a hot issue in Massachusetts.
I recently did a seminar on the state of non-competes and the items pending on Beacon Hill this legislative session.
To view a 15 minute clip from this presentation, click here.