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On April 23, 2024, the Federal Trade Commission (FTC) voted to ban non-compete agreements for the vast majority of employment purposes. The new rule prohibits employers from entering into new non-compete agreements with any workers, including contractors, and requires all employers to inform any current and past workers that their non-compete agreements are unenforceable.
Employers who fail to abide by the new rule may face an adverse FTC enforcement action, prohibitive injunctions, and civil penalties up to $10,000 per individual offense. The new rule will go into effect 120 days after it is published in the Federal Register, likely at the end of August 2024, unless stayed by a court.
The compliance process involves identifying all current and past workers affected by non-compete agreements, notifying them of the unenforceability of those non-compete agreements, and removing non-compete agreements from any employment contracts looking forward.
- What is a Non-Compete Agreement?
- Why is the FTC banning them?
- Unenforceability of existing agreements
- Senior Executive Exemptions
- Other agreements
- What will happen now?
- When will the new regulation take effect?
- What should employers do in response to the new regulation?
- Is there a notice requirement for existing agreements?
- Common Law and non-compete agreements
THE non-compete clause has been causing trouble for over 600 years. In 1414 an English court heard the case of John Dyer, an apprentice whose master had stopped him from plying his trade for six months. The judge was having none of it. “The contract is contrary to common law,” he ruled. Individuals should be free to pursue the livelihood of their choice.
That principle has been diluted in the intervening centuries—most countries give businesses some leeway to use non-compete clauses, whereby workers promise not to start or join firms that go head-to-head with their ex-employer. About 20% of employees have some sort of non-compete agreement in place.
HR is primarily responsible for drafting and enforcing non-compete agreements. This webinar will help HR to focus on the future of these agreements and what to do, both now and, going forward.
- Company Leadership
- Compliance professionals
- HR Professionals
- Managers
- Supervisors
- Anyone who is concerned about trade secrets and confidentiality of documents, products and services.
Greg Chartier is an experienced Human Resources speaker on Clatid. He is Principal of The Office of Gregory J Chartier, and is a well-known management consultant, educator and speaker and author of the recently published What Law Did You Break Today? His practice is based on the Business Partner Model of Human Resources, which emphasizes on outsourcing, the use of technology to gain efficiencies and the improvement of managerial skills.
Greg is a thought-provoking professional speaker and his wisdom and insights into management and leadership make him an electrifying speaker and seminar leader. His seminars are customized to reinforce company mission, vision, values and culture and the content is practical for team leaders, managers, supervisors and executives. His philosophy is simple: management is a skill and you can be a better manager by developing your skills.
He has a bachelor's Degree from The Citadel, the Military College of South Carolina, an MBA from Rensselaer Polytechnic Institute and his Ph.D. in Human Resources Management from Madison University. Greg is certified by the Society for Human Resources Management (SHRM) as a Senior Professional in Human Resources (SCP) and as both a Senior Professional and a Global Professional in Human Resources (SPHR and GPHR) by HRCI, the Human Resource Certification Institute.
He is a former Board Member of the Business Council of Westchester, where he was the Chair of the Human Resources Council and a member of the Executive Committee. Greg is a national member of SHRM and a local SHRM chapter, the Westchester Human Resources Management Association. He was also a member of the Board of the Child Care Council of Westchester.
Greg is involved in the Certification Program for Human Resources Management at Pace University, which includes the preparatory program for the Human Resources Professional Examinations and the Essentials in Human Resources Management Program, as well as the Continuing Education Programs including HRCI and SHRM recertification. He is also a member of the faculty of the New York Medical College in Valhalla, NY.
SHRM -
Compliancevent is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. This program is valid for 1.0 PDCs for the SHRM-CPSM or SHRM-SCPSM. For more information about certification or recertification, please visit - portal.shrm.org.
HRCI -
This webinar has been approved for 1.0 HR (General) re-certification credit hours toward California, GPHR, HRBP, HRMP, PHR, and SPHR recertification through the HR Certification Institute.
The use of this seal is not an endorsement by the HR Certification Institute of the quality of the activity. It means that this activity has met the HR Certification Institute’s criteria to be pre-approved for re-certification credit.
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