An Indiana Employment Attorney's Take on the Nationwide Ban on Non-Compete Agreements


As a Fort Wayne, Indiana Employment Law Attorney, I often get contacted by employees or perspective employees seeking legal guidance with respect to a non-compete agreement they signed or one that they are being told to sign.  

Generally speaking, Indiana courts disfavor non-compete agreements, however, the courts will uphold them if they drafted properly and aren't too overbroad.

The employment law landscape is potentially changing with the United States Federal Trade Commissions' announcement of its Final Non-Compete Clause Rule in April 2024, which bans post-employment non-compete clauses between employers and employees. The ban is expected to become final in approximately August 2024.  

Needless to say, my phone has been blowing up with calls from employment law clients in the Fort Wayne, Indiana area asking me questions about the FTC's ban and what impact it has on their non-compete agreements. 

I'll attempt to try to address some of the frequently asked questions that I've been getting.

  • Question: When is the non-compete ban going to go into place?
  • Answer: I'm expecting it to go into place in approximately August 2024...there's a 120 day waiting period following the publication of the FTC's ban in the Federal Register, which is the official journal of the federal government that contains government agency rules, proposed rules, and public notices.

  • Question: Is my current non-compete agreement enforceable against me?
  • Answer: Yeah, it's still enforceable. 

  • Question: Why did the FTC decide to ban non-competes? 
  • Answer: I think the current administration has played a big role in the emphasis of employee-rights. I think the FTC believes that non-compete agreements disfavor employees, stifle competition and suppress earnings of employees. The FTC thinks banning non-compete agreements will foster competition and increased employee earnings.  

  • Question: What does the non-compete ban impact?
  • Answer: It's pretty broad in that it covers all non-competes for employees (including employees and independent contractors) with a few exceptions. 



  • Question: Does it apply to my existing non-compete agreement that I signed a couple of years ago?
  • Answer: Yeah, I think in most situations the ban is applied retroactively resulting in a non-compete agreement signed a couple of years ago being unenforceable. 

  • Question: Is the ban actually going to go into place and allow me out of the non-compete agreement that I signed?
  • Answer: I suspect that there will be a number of legal challenges to the FTC's ban on non-compete agreements. Ultimately, I think the legal challenges will reach the United States Supreme Court where the FTC's ban will be adversely impacted.

Comments

Post a Comment

Popular posts from this blog

Indiana Worker's Compensation: Avoiding Social Security Disability Offsets

Image
In many Indiana Worker's Compensation Cases , an injured worker might receive a lump sum settlement after the injured worker has completed all necessary medical treatment and has been placed at maximum medical improvement by the treating doctor. This lump sum settlement could be based upon three components: 1) unpaid or future medical expenses; 2) unpaid or future wage loss benefits; and 3) compensation for any permanent injury the worker sustained. The worker's compensation lump sum settlement is made under Indiana Code Section 22-3-2-15. It is referred to as a Section 15 Settlement. This lump sum settlement is tax free. Prior to settling the worker's compensation case, it is important to determine whether the injured worker is thinking about or has applied for Social Security Disability Benefits because any lump sum worker's compensation settlement could potentially negatively impact the injured worker's receipt of Social Security Disability Benefits. In ot
Read more

June 3, 2019 United States Supreme Court Decision Regarding EEOC's Charge of Discrimination

Image
In the United State Supreme Court case, FORT BEND COUNTY, TEXAS v. DAVIS , the Court held that  Title VII’s administrative-exhaustion requirement is not a jurisdictional prerequisite to a lawsuit, but is instead a waivable claim-processing rule.   Title VII of the Civil Rights Act of 1964 – which forbids employers from discriminating against employees on the base of race, color, religion, sex and national origin – requires that an employee must first file a charge with the EEOC before going to court. Fort Wayne Attorney Nathaniel Hubley Monday’s decision stems from the case of Lois Davis, who says she was fired from her information-technology position with Fort Bend County, Texas, for attending a church event on a Sunday when she was scheduled to work. She also argued her supervisor retaliated against her for reporting sexual harassment by a co-worker, who resigned after an investigation. Davis first filed a charge of harassment and retaliation with the EEOC in March 2011
Read more

Important Things to Know About Indiana Worker's Compensation Permanent Total Disability Benefits

Image
As a Fort Wayne Work Injury Attorney who handles Indiana Worker's Compensation cases, there are several things that I explain to my clients about worker's compensation permanent total disability benefits. As an Indiana Worker's Compensation Lawyer , the important things to know about worker's compensation permanent total disability benefits below:  As way of a background, it is important to know that the Indiana Worker's Compensation Act provides several benefits to employees, including, but not limited to, permanent total disability ("PTD") benefits. These benefits are paid when it is established that the employee will never again be able to work in reasonable employment. Specifically,  PTD benefits are awarded pursuant to Ind. Code § 22-3-3-8 when it is established that the employee will never again be able to work in a reasonable employment. Bowles v. Griffin Industries , 798 N.E.2d 908, 910 (Ind. Ct. App. 2003), on subsequent appeal, Bowles
Read more