What You Need to Know
- Following the federal proposal to ban non-compete agreements, labor and employment lawyers are prepping for the aftermath.
- The final law is expected to be challenged in court, and attorneys are already thinking of which angles to attack from.
- But even if the federal ban doesn't pass, states may start their own crack downs on the practice.
While the federal government mulls a nationwide ban on non-compete agreements, states are attempting their own bans, and employment attorneys are preparing to handle the aftermath.
Early this year, the Federal Trade Commission proposed banning future and currently active non-compete clauses. The proposal argues that non-compete clauses hurt workers by lowering their ability to find a new job, trapping them in their current jobs, which lowers wages and prevents the creation of new businesses.
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