The organizations that oppose a non-compete ban in the United States include US Chamber of Commerce, American Medical Association, the Restaurant Law Center, members of US Senate, and the Antitrust Law Section of the American Bar Association.
Today, the Federal Trade Commission (“FTC”) issued a proposed rule that would ban non-compete agreements between employers and workers, including both employees and independent contractors.
While some states automatically make non-compete agreements invalid if a worker is terminated “without cause,” laid off, or is part of a reduction in force, many others do not. Even if a lay off does not automatically invalidate an employee’s non-compete agreement, other circumstances may render the non-compete agreement invalid.
Many non-compete agreements in Texas often include employee non-solicitation restraints, which prohibit departing employees from soliciting their co-workers to leave with them. Whereas non-competition restraints
A non-compete agreement or a non-compete clause prohibits employees from working for their employers’ competitors within a certain geographic area, for a certain period of
In several states, enforcement of void non-compete agreements is a misdemeanor, punishable by fines and administrative penalties.