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 “Businesses Face ‘Seismic Shift’ After FTC Bans Noncompetes. Here’s What They Should Do Next,” by Andy Medici. (Read the full version – subscription required.)
Following is an excerpt:
The FTC has finalized a sweeping ban on noncompete clauses. Here's what businesses should do now. …
Pete Steinmeyer, attorney at law firm Epstein Becker & Green PC, also said he is not recommending any immediate changes and said he ultimately believed the new rule will not go into effect. But business owners still need to be prepared, he added.
“That being said, 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." …
"That means businesses should reassess who within their organizations needs a traditional noncompete and should consider alternatives, such as solicitation agreements, advance notice provisions or even employment agreements of fixed duration. Confidentiality agreements and financial incentives could also be used to retain workers, he said."
