The Federal Trade Commission (FTC) is an independent agency of the United States government that enforces civil antitrust law and promotes consumer protection. Namely, its authority extends to federal employment laws for for-profit businesses. With this, its most recent ruling pertains to the increasingly prevalent phenomenon of non-compete agreements initiated by employers. Continue reading to learn more about the FTC’s rule on banning noncompetes and how an experienced employment agreement attorney in Gloucester County NJ, at The Vigilante Law Firm, P.C. can help you apply this to your employment.
What should I know about the FTC’s rule on banning non-competes?
When a worker signs a non-compete agreement, they typically promise not to leave their current job for another job in the same or largely similar field for a certain period. Well, on April 23, 2024, the FTC issued a final ruling to ban non-compete agreements that are “a term or condition of employment that prohibits a worker from, penalizes a worker for, or functions to prevent a worker from” seeking or accepting different work or operating a business in the United States.
With this ruling, FTC Chair Lina M. Khan was quoted saying, “Non-compete clauses keep wages low, suppress new ideas, and rob the American economy of dynamism, including from the more than 8.500 new starts that would be created a year once non-competes are banned. The FTC’s final rule to ban non-competes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to the market.”
Further, the FTC suggests that for-profit business employers pursue alternative avenues to non-competes, such as enforcing trade secret laws and non-disclosure agreements.
As a New Jersey worker, how might this ruling benefit me?
Essentially, the FTC made this final ruling on banning non-compete agreements in the hopes that United States workers and the economy as a whole would prosper. More specifically, as a New Jersey worker, you may hope to reap the following benefits in due time:
- You may be granted the freedom to change jobs as you see fit, without penalty of:
- Being forced to relocate for an acceptable job.
- Being forced to switch to a lower-paying job that is acceptable.
- Being forced to leave the workforce altogether when there is no acceptable job.
- Being forced to defend yourself in litigated proceedings for taking an “unacceptable” job.
- You may be granted the freedom to see your start-up business come to fruition, without restriction from your previous employer.
- You may be granted the freedom to patent any innovative ideas you come up with, without restriction from your previous employer.
- You may expect to be proposed higher, more competitive wages with every job offer that comes to you.
When in doubt, someone at The Vigilante Law Firm, P.C. is always willing to look into your case. So please retain the services of one of the skilled New Jersey employment lawyers today.
