FTC Votes to Limit Non-Compete Clauses

Here's what you need to know:

The Federal Trade Commission (FTC) recently voted to pass limiting non-compete agreements for most workers, including propane industry employees. These agreements typically prevent workers from taking jobs with competitors after leaving your company. Employer Action Required: Within 120 days (unless a court blocks the rule), you must notify your employees in writing that existing non-compete clauses in their contracts are no longer enforceable.

Action taken: Just over a year ago, last April, the National Propane Gas Association (NPGA) spoke out against the rulemaking at a public listening session as well as joined almost 300 other associations (including the U.S. Chamber of Commerce) representing 45 states to submit a joint comment to the Federal Trade Commission regarding their proposed rule to ban non-compete clauses. However, this week, the FTC voted to adopt the non-compete ban.

What's Next? A lawsuit in Texas from the U.S. Chamber of Commerce challenging the rule is already in progress.NPGA will continue to monitor legal challenges and update the membership on enforcement.