FTC rule on noncompete agreements triggers rush for legal advice
Charlotte employment lawyers say companies have plenty of questions about proposed ban on noncompetes
The following article appeared in the May 3, 2024, edition of The Charlotte Ledger, an e-newsletter with smart and original local news for Charlotte. We offer free and paid subscription plans. More info here.
Employers seek answers on noncompete agreements, as new FTC rule appears headed toward legal limbo
Charlotte employment lawyers say they’re being flooded with questions this week, following an announcement by the Federal Trade Commission that the agency is seeking to ban noncompete clauses in employment contracts.
The provisions, which prevent employees from leaving their jobs to go work for competing companies, are common across a range of industries and job titles, including people in sales or executive roles and in fields as diverse as tech, doctors’ offices and air conditioning repair.
The FTC says its move would give workers flexibility and contribute to higher wages. But business groups have sued, saying the federal agency lacks the power to ban noncompete clauses, which they say help protect a business’ intellectual property and its investments in worker training.
Charlotte employment lawyers contacted by The Ledger this week say the No. 1 question employers want answered is whether and when the new rules would take effect.