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NJBIZ panel dissects FTC rule banning noncompete agreements
As part of NJBIZ’s latest virtual discussion, attorneys from three of New Jersey’s top law firms delved into the Federal Trade Commission’s controversial vote to prohibit the use of noncompete agreements for almost all U.S. workers.
FTC bans noncompetes nationwide
“Noncompete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8,500 new startups that would be created a year once noncompetes are banned,” FTC Chair Lina Khan said.
CLOSING ENTRY: Rules of engagement
"Noncompete clauses in employment contracts are valuable tools used by employers with their high-level workforce," states Heather Weine Brochin, a partner with Day Pitney LLP in New Jersey.
New Jersey co-leads effort supporting FTC’s proposed non-compete ban
According to the Federal Trade Commission, the change could increase wages by nearly $300 billion per year and expand career opportunities for about 30 million Americans.
New balance
The president is asking the FTC to ban or limit non-compete clauses, which prevent millions of workers from going to work for their employers’ rivals. The move was hailed by labor rights groups who contend the provisions limit opportunities, especially for lower paid employees. But business groups say they are vital to protect company interests, stay competitive in the market and not unfairly lo[...]
