The Federal Trade Commission (FTC) has approved a new rule that would effectively prohibit the enforcement of noncompete agreements across the United States, including in North Carolina. Because the rule is new, our Raleigh employment lawyers explain what you need to know:
Noncompete agreements, also known as "covenants not to compete," are contractual provisions that restrict an individual's ability to work for a competitor or start their own competing business after their employment has ended.
Employers often use these types of agreements to prevent their employees from leaving for other jobs. Oftentimes, employers include noncompete language in their handbooks and contracts even when they know such language is unenforceable to intimidate their employees into staying with the company.
The rule effectively ends the use (or should end the use) of noncompete agreements in North Carolina. The rule classifies the use of noncompete agreements as an unfair method of competition. Under the rule, employers need to notify their employees that their noncompete clauses are no longer in effect and have been rescinded.
Overall, the rule represents an important step in regulating the use of these agreements in the United States. By protecting workers, the rule strikes a fairer balance between the interests of employers and employees and promote competition in the marketplace.
It is important to note, though, that even though the FTC has issued this rule, you can expect protracted litigation regarding its legality. Moreover, the rule has no impact on non-solicitation or non-disparagement clauses which will still be enforceable by employers. So, while this is absolutely a positive development for American workers, it is unclear of its ultimate impact as of yet. If you have questions about your noncompete, our Raleigh employment lawyers are here to guide you and help you evaluate your options in this changing legal landscape.
Most victims of unfair employment practices (including noncompete agreements) have questions about what they should/shouldn’t do and how the legal system works. It’s understandable because this kind of tragedy rarely happens to a person more than once. Our Raleigh employment lawyers can help.
If you are a party to an unfair employment contract or noncompete agreement, contact our experienced employment lawyers in Raleigh, North Carolina for a free consultation. We can help you navigate those legal issues to unlock your earning potential and employment prospects.
