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Orlando Business Lawyer / Blog / Non-Compete Agreements / Non-Compete Agreements To End For Millions Of Workers

Non-Compete Agreements To End For Millions Of Workers


Generally, people have the right to quit a job and work somewhere else. However, millions of people are limited due to non-compete agreements. A non-compete agreement is a clause in an employment contract that limits where an employee can work. It generally prevents employees from working for competitors in a specified geographic area for a specified period of time. For example, an employee may not be able to work in a 25-mile radius for a period of one year. Some agreements, however, are much more limited, perhaps extending to a 100-mile radius for five years.

As you can see, these agreements can make it hard for an employee to keep working in their field after leaving an employer. They may have to move many miles away in order to work in their intended industry, which can be very inconvenient, to say the least.

The good news is that non-compete agreements could be ending soon. Earlier this year, the Federal Trade Commission (FTC) proposed a rule that would void all current non-compete clauses and ban them from future contracts. This rule would affect 30 million Americans, or roughly one out of every five workers.

Indeed, workers in all sorts of industries are affected by non-compete agreements. In the past, these agreements were reserved for highly paid executives and those in the IT field. Nowadays, all sorts of workers are bound by non-compete agreements, from fast food workers to hair stylists to construction workers to security workers to journalists to those in the entertainment industry. It has nothing to do with pay; even low-wage workers are affected, making it hard for them to leave companies in search of greener pastures.

Non-compete agreements have many disadvantages. They block workers from freely switching jobs, depriving them of higher wages and better working conditions. They also deprive businesses of a talent pool that they need to build and expand. The rule would get rid of all these cons, while increasing wages and promoting competition. Also, businesses will become more efficient when they’re not afraid of being sued.

However, opponents say that non-compete agreements are essential. They help protect trade secrets and retain workers in this day of age. There is so much information out there and the job environment is so competitive. Employees are often exposed to things that may not be trade secrets, but they are more of a “secret sauce” for how a company operates. It’s still an important part of a company that should not be shared with competitors.

Learn More About Non-Compete Agreements

The business climate is very competitive. Many companies put non-compete agreements in place to limit competition, but now they won’t be able to under the new law.

Orlando non-compete agreements lawyer B.F. Godfrey from Godfrey Legal can help you understand your legal rights when it comes to creating or agreeing to these legal documents.  Schedule a consultation today by filling out the online form or calling (407) 890-0023.



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