FTC Bans Non-Compete Agreements But Lawsuits Are Filed to Challenge It | The Job Judge The Job Judge

In this week's episode of The Job Judge, The FTC has implemented a new rule that bans all employers, including sandwich shop Jimmy John's, from forcing employees to sign non-compete agreements. Non-compete agreements are contracts that require employees to agree not to work for a competitor for a certain period of time after leaving their current job. The theory behind these agreements is that they provide adequate consideration under contract law as a condition of employment. However, the FTC has deemed certain non-compete agreements to be abusive and has therefore cracked down on them. The new rule applies to all employees, including executives and top salespeople. The ban on non-compete agreements is aimed at creating a work culture where people want to stay rather than being forced to stay due to contractual obligations. The rule goes into effect in 120 days. This development is significant because it protects the rights of employees to seek employment where they choose and provides them with greater freedom to leave toxic work environments.
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The Job Judge Podcast is a podcast for anyone who works. This is not legal advice! Engaging and informative, it’s a must-listen/watch for any manager, business owner, HR professional, or anyone who works. Relying on three decades of experience as an employment law attorney and HR Executive, Karen Michael uses real case studies in the news and navigates through the legal landmines and workplace dysfunction that we know is probably happening right now in your organization.