You probably know the federal non-compete ban is on ice for now – but that doesn’t mean employers are free to use non-competes indiscriminately. What remains in the wake of the FTC’s ban is a highly complex, constantly shifting patchwork of state laws that regulate the administration and substance of non-compete agreements. Here’s your reminder to-do list, including the top 10 state law issues you’ll still need to tackle, even though the FTC’s non-compete ban did not take effect September 4.
First, Catch Up on Breaking News
In case you missed it, a Texas federal judge struck down the Federal Trade Commission’s proposed non-compete ban on August 20, blocking the rule from taking effect on September 4 for all employers nationwide. You can read more about this significant development here.
Then, Review the Top 10 State Law Issues You Still Must Consider
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| _____ | Give Advance Notice When Required In some states, you can’t just give non-competes to new hires on the first date of employment or to current employees without advance notice. For example, Illinois law requires employers to give employees a copy of the non-compete at least 14 calendar days before their start date or give them at least 14 calendar days to review it. Other states have varying requirements. |
| _____ | Confirm Employee Meets Any Minimum Compensation Threshold You need to be sure that the individual you’re asking to sign a non-compete meets the minimum compensation threshold, if any, required by...
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