What to Know About the FTC Ruling Banning Noncompete Clauses

 Posted on April 30, 2024 in Uncategorized

In a groundbreaking move, the Federal Trade Commission (FTC) has taken a significant stand against the often common practice of noncompete clauses. This announcement is expected by many to pave the way for a new era of economic growth and help maximize innovation. But what will it mean for businesses across Illinois and the nation? For questions regarding how the banning of noncompete clauses will affect your Illinois business, contact an attorney. 

At Dickler, Kahn, Slowikowski & Zavell, Ltd., our team of attorneys takes pride in staying up-to-date with the ever-changing landscape of business law. Possessing over 150 years of combined experience, our firm can handle your case from beginning to end while providing guidance every step of the way. 

What is a Noncompete Clause?

A noncompete clause is a contractual agreement between an employer and an employee. This agreement prevents the employee from working for a competitor business or starting a similar business for a certain span of time after leaving the job he or she currently has or starting a similar business after leaving his or her job. For years, noncompete clauses have been instrumental in protecting businesses’ competitive advantage since the clause prohibited ex-employees from joining competing businesses. The noncompete clause was able to ensure that workers did not hop from one business to another, spreading important knowledge to potential competitors. 

The FTC Ruling May Have Implications for Employee Wages 

Another feature of the recent FTC ruling is the potential to raise worker wages. As a result, employees will have greater bargaining power in order to negotiate and pursue higher pay and more favorable benefits. While this may be good news for employees, business owners may be less inclined to think of this as good news. By the FTC ruling giving workers more leverage, companies may be strongarmed into providing higher pay and better benefits, thereby affecting the company's bottom line. To protect your business from aggressive employee tactics, hiring an attorney to craft a strategy to counteract the new FTC ruling may be highly beneficial to your business.

Contact Our Cook County, IL Business Law Attorney

As the world of business law embraces this new era, business owners may have questions regarding how this new FTC ruling may affect them and his or her business. To ensure you obtain the legal guidance you need, contact an Arlington Heights, IL business lawyer with Dickler, Kahn, Slowikowski & Zavell, Ltd.. Call 847-593-5595 for a private consultation.