Summary. In 2023, company leaders will have to address new regulations and laws in three areas — noncompete clauses, pay transparency, and human capital disclosures — that have far-reaching implications that company leaders may not have fully grasped. How these...
While layoffs in Silicon Valley and elsewhere dominate headlines, the reality is that many companies today still find themselves in a fierce war for talent. A spate of new laws and regulations — many of which are intended to make the workplace fairer for employees — may make the situation even more challenging for employers.
Three such developments — the Federal Trade Commission’s proposed ban on noncompete clauses in employment contracts, pay transparency legislation in many local jurisdictions, and new human capital disclosures mandated by the Securities and Exchange Commission — have far-reaching implications that company leaders may not have fully grasped. How these changes will play out is far from clear, but the time to start thinking about them is now. Here’s how leaders can adopt a growth mindset by viewing the coming changes as an opportunity to think deeply about their talent strategy and turn these regulatory developments to their advantage.
A Ban on Noncompete Clauses
The FTC’s proposed rule would ban the use of noncompete clauses as “an unfair method of competition.” The agency’s rationale for the proposed ban — which it estimates will increase workers’ earnings by $250 billion to $296 billion per...
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