In today’s corporate landscape, non-compete agreements have become familiar, extending their reach beyond the corporate world to professional practices like dental offices and medical practices. However, potential game-changers are on the horizon as Congress has proposed a bill and the Federal Trade Commission (FTC) has proposed regulations aimed at eradicating non-compete agreements nationwide.

In the most recent episode of Private Practices of Maine, Michael continues to unravel the complexities of non-compete agreements and their implications on the professional world. He explains the role of the FTC in executing executive orders, unearthing its surprising ability to finalize rules without congressional approval. He also provides a comprehensive breakdown of the FTC’s definition of non-compete clauses, and of a “worker” within the context of such agreements.

There are existing gaps in rules and regulations, and Michael touches on their impact on post-closing employment agreements. FTC commissioners wield the power to influence regulatory outcomes, including the potential rescinding of non-compete clauses. He explores how politics can affect how the FTC commissioners set those rules and regulations.

Other items Michael covers include:

  • The FTC’s proposed regulation that would categorically ban employers from using non-compete agreements with their workers. 
  • The critics of the proposed FTC regulation. Some critics argue that the rule conflicts with current legal precedent, infringes on the private law of contracts, and might overstep the FTC’s authority.
  • How the FTC regulation is different from the proposed Senate bill. 

Find out when the proposed FTC regulation may take effect and explore how the FTC regulation could affect your business.

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