Overview
The FTC estimates that 30 million people - one in five US workers - are bound by a noncompete clause in their current jobs. And for most of them, the agency asserts, such a clause restricts them from freely switching jobs, lowers wages, stifles innovation, blocks entrepreneurs from starting new businesses and undermines fair competition.
The final rule is a somewhat narrower version of the proposed rule that the agency put out for public comment in January of 2023.
It will ban for-profit employers from issuing new non competes to anyone. And - with one exception - it makes currently existing noncompete agreements unenforceable after the rule's effective date, which is set at 120 days from the rule's publication in the Federal Register.
The rule, however, does allow currently existing noncompete agreements for senior executives to remain in force. Senior executives are defined as workers earning more than $151,164 annually who also are in a "policy-making position."
Why you should Attend
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.
Areas Covered in the Session
- What is a Non-Compete Agreement
- Why is the FTC banning them
- Unenforceability of existing agreements
- Senior Executive Exemptions
- Other agreementsÂ
- Session Highlights (Bullet points)
- 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
Who Will Benefit
- Any firm that uses non-compete agreements will benefit from the explanation available in the webinar
Speaker Profile
Greg Chartier is Principal of The Office of Gregory J Chartier, a Human Resources Consulting firm 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 places its’ emphasis 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 Bachelors 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. He 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 and 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.