crashbandicootofthetitans| Federal Trade Commission's non-competition ban threatens to reshape the working environment

The Federal Trade Commission (Federal Trade Commission) decided last week to outlaw almost all non-compete agreements.CrashbandicootofthetitansThis is a high-risk shift in US law that could restructure the balance of power between companies and workers.

The rule means it will be easier for millions of American workers to leave their existing jobs to work for competitors' companies or to start their own companies.

Companies say it will be harder for them to protect trade secrets and confidential information.

A legal battle is under way to determine whether the change will be allowed to take effect at the end of August or early September.

Chris Marquardt, director of labour and employment law at Alston & Bird, said: "if this rule is allowed, it will mark a major departure from centuries of jurisprudence and law in the United States."

This rule applies to employees and independent contractors in a variety of industries, from doctors and engineers to fast food workers and salespeople. With a few exceptions, it also applies to retro.

But there are some exceptions. One is the non-compete employment agreements that have been reached with the company's chief executives, presidents and senior executives who have "policy-making" powers and earn more than $152000 a year.

But new agreements with these executives will not be allowed in the future.

"this is a very narrow exception to the rule," Marquardt said. It only applies to a small number of people, perhaps in large organizations. "

However, not all industries will be bound by the rule. Some banks and some non-profit organizations (such as health care providers and livestock farms) will not have to comply with the rules.

On Wall Street, this could mean that traditional banks may be able to maintain more control over former employees than companies such as private equity firms or hedge funds.

Another exception allowed by the Federal Trade Commission is the use of non-compete agreements to protect the company's interests in the event of a sale.

Bosses don't sit back and wait. In the days after the FTC announcement, the Federal District Court of Texas filed two lawsuits, one of which was filed by the American Chamber of Commerce (US Chamber of Commerce).

They believe that the non-elected members of the Federal Trade Commission rejected the party line by a vote of 3 to 2 to approve the rule, and they have no right to deprive workers and companies of their contractual rights.

Instead, they argue that only states have the right to regulate such agreements between these parties.

Some states have already banned them altogether. California, for example, outlawed competition agreements for fear that they would hinder the movement of workers, prevent people from innovating and prevent them from leaving the company to start their own companies.

Kate Perrelli, co-chair of Seyfarth's National Trade Secrets, computer Fraud and Prohibition practice Group, said the study to determine whether the practice was correct was "not fully mature".

The chamber of commerce claims that FTC rules will force companies and workers into expensive and ineffective court battles.

It says employers will sue to protect their confidential information, while highly skilled workers may claim that the agency illegally usurped their right to negotiate pay increases with competitive agreements.

James Witz, co-chairman of Littler's unfair Competition and Trade Secret practice Group (Littler's unfair Competition and Trade Secret practice Group), said his business clients were concerned that the rule would endanger their most valuable expertise and protect their ability to invest in employees.

Melissa McDonagh, co-chair of Vitz, added that clients were also concerned that the rule was too vague about the legality of banning alternative trade secret protection, such as solicitation and confidentiality agreements.

These and other so-called restrictive contracts can prevent employees from sharing the company's secret information with competitors.

Pereli said she wouldn't be surprised if the judge temporarily blocked the rule from coming into force in court.

"then it will appeal again and again, probably eventually to the Supreme Court," Perrelli said.

In any case, employment lawyer Roger Feight says the rest of the business community needs to start rethinking their employment agreements.

"regardless of size or industry, a company must be prepared to abide by the rules unless it can withstand legal challenges," he said. "

Tags:

Prev: winningpowerballtickets| Mango Hypermedia: In the field of "Damang Project" Mini programs, 200 vertical screen dramas are expected to be launched during the year
Next: galpoker| The Ministry of Finance promotes a new government procurement method,"Interim Measures for the Management of Government Procurement Cooperation and Innovative Procurement Methods" released