Poof! Just Like That, Non-competes are Gone!

For nearly one in five workers in the United States, leaving their job just became a lot easier as the Federal Trade Commission issued its final rule banning all non-compete contracts.

This means that by the end of the summer, nearly all employees who are subject to a non-compete contract right now will be free to work wherever they want, even in competing firms they were barred from.

According to their release, the FTC estimates this “will lead to new business formation growing by 2.7% per year, resulting in more than 8,500 additional new businesses created each year.”

Furthermore, the FTC says it will increase wages “by an additional $524 per year, and it is expected to lower health care costs by up to $194 billion over the next decade.”

Finally, the FTC says: “The final rule is expected to help drive innovation, leading to an estimated average increase of 17,000 to 29,000 more patents each year for the next 10 years under the final rule.”

The Orlando Law Group wrote about the possible impacts of this rule in November warning businesses this may be a possibility. Now, businesses must prepare to take action over the next few months.

The attorneys at The Orlando Law Group can help your business prepare and work through any issues this new rule may cause.

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