Non-compete agreements are commonplace in the corporate world but also prevalent in professional practices such as dental offices and medical practices. A proposed bill, known as The Workforce Mobility Act of 2023, currently before Congress seeks to eliminate non-compete agreements nationwide. However, in the midst of a divided Congress, Presidents are turning to their administrative agencies as a way to achieve results without congressional involvement.
In this episode of Private Practices of Maine, Michael continues his exploration of non-compete agreements and how they impact professional services. This time, the spotlight turns to The Federal Trade Commission (FTC) and its proposed regulation on non-compete agreements. Michael provides insights into the potential timeline for the rule’s implementation and the steps business owners can take to navigate it. Additionally, he also discusses how the FTC plays a large part in the implementation of executive orders.
Finally, Michael provides a comprehensive breakdown of the FTC’s definition of a non-compete clause, what is included in it, and the definition of a worker as it relates to a non-compete clause. He also explains the gaps in existing rules and regulations and how that affects existing post-closing employment agreements.
In this episode, you will hear:
- The difference between the FTC’s and Congress’s proposed rule on non-compete agreements.
- The role of federal agencies as rulemaking authorities and how presidents are using them to get things done without sending changes through Congress for approval
- President Biden’s order to the FTC in July 2021 related to non-compete clauses
- The FTC’s definition of a non-compete clause, what is included, and the definition of a worker as it relates to a non-compete clause
- What happens when an employer rescinds a non-compete clause
- The gaps in the current rules and regulations and how that impacts post-closing employment agreements
- A former commissioner’s dissent to this proposed rule
- When the proposed non-compete rule would take place and why it is a political process that will likely be an election year issue
- What business owners can do to address this issue on a practical level
Resources from this Episode
Federal Non-Compete Clause Rules: www.federalregister.gov/documents/2023/01/19/2023-00414/non-compete-clause-rule
Maine Legislature Non-Compete Clause Rules: legislature.maine.gov/legis/statutes/26/title26sec599-A.html
Website – malloyfirmmaine.com
Phone – (207) 333-6700
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