Peter A. Steinmeyer, Member of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Chicago office, was quoted in the Business Journals, in “What Employers Need to Know About the FTC Noncompete Ban,” by Marq Burnett. (Read the full version – subscription required.)
Following is an excerpt:
The Federal Trade Commission recently voted to finalize a rule that would ban most noncompete agreements across the nation.
The rule has drawn significant criticism from business groups, including a lawsuit from the U.S. Chamber of Commerce, and attorneys say the law will have significant implications for businesses if it survives the legal challenges. …
Still, employment attorneys say businesses should still take stock of their existing employment agreements and possibly reevaluate the use of noncompetes for new hires in the meantime.
Pete Steinmeyer, attorney at law firm Epstein Becker & Green PC, said he is not recommending any immediate changes and ultimately doesn't expect the ban to take effect. But he said business owners should be prepared due to what's happening at the state level.
“Even if the FTC’s noncompete ban is blocked in court, that will not stop the legislative trend across the country toward greater scrutiny of noncompetes,” Steinmeyer said. “If anything, the FTC’s ban will likely encourage additional legislative activity in this area at the state or local level.”
