While the courts still battle whether the Non-Compete agreements are legally binding, it's time to be proactive and prepare ourselves should the FTC ban go through. To assist the best we can, the TRR team put together a list of what employers can do in case the ban goes through.
Audit Current Agreements-Review existing employment contracts to identify all non-compete clauses and determine which employees are covered. This can help companies understand the scope of the impact and begin planning for any required changes.
Enhance Internal Talent Retention Programs-Develop programs that build employee loyalty and satisfaction, such as mentorship, professional development, and career advancement opportunities.
Invest in Strong Onboarding and Knowledge Management Systems-A strong knowledge transfer program can mitigate some risks associated with turnover and help new employees get up to speed quickly if others leave.
Strengthen Legal Protections for Confidentiality and IP-Shift focus from non-competes to robust NDAs, non-solicitation agreements, and well-defined IP policies that are enforceable under existing laws.
Monitor FTC Developments-Stay informed about any updates or changes in the FTC’s final rule, as well as state-specific responses or modifications to the federal rule.
Comments