UPDATE-NON-COMPETE AGREEMENTS

While the courts still battle whether the Non-Compete agreements are legally binding, it's time to be proactive and prepare ourselves should the FTC ban go through. To assist the best we can, the TRR team put together a list of what employers can do in case the ban goes through.

1. Audit Current Agreements-Review existing employment contracts to identify all non-compete clauses and determine which employees are covered. This can help companies understand the scope of the impact and begin planning for any required changes.

2. Enhance Internal Talent Retention Programs-Develop programs that build employee loyalty and satisfaction, such as mentorship, professional development, and career advancement opportunities.

3. Invest in Strong Onboarding and Knowledge Management Systems-A strong knowledge transfer program can mitigate some risks associated with turnover and help new employees get up to speed quickly if others leave.

4. Strengthen Legal Protections for Confidentiality and IP-Shift focus from non-competes to robust NDAs, non-solicitation agreements, and well-defined IP policies that are enforceable under existing laws.

5. Monitor FTC Developments-Stay informed about any updates or changes in the FTC’s final rule, as well as state-specific responses or modifications to the federal rule.