Description

Non-compete agreements are commonplace in the corporate world but also prevalent in professional practices such as dental offices and medical practices. A proposed bill, known as The Workforce Mobility Act of 2023, currently before Congress seeks to eliminate non-compete agreements nationwide. However, in the midst of a divided Congress, Presidents are turning to their administrative agencies as a way to achieve results without congressional involvement.

In this episode of Private Practices of Maine, Michael continues his exploration of non-compete agreements and how they impact professional services. This time, the spotlight turns to The Federal Trade Commission (FTC) and its proposed regulation on non-compete agreements. Michael provides insights into the potential timeline for the rule's implementation and the steps business owners can take to navigate it. Additionally, he also discusses how the FTC plays a large part in the implementation of executive orders.

Finally, Michael provides a comprehensive breakdown of the FTC's definition of a non-compete clause, what is included in it, and the definition of a worker as it relates to a non-compete clause. He also explains the gaps in existing rules and how that affects existing post-closing employment agreements.

In this episode, you will hear:

• The difference between the FTC's and Congress's proposed rules on non-compete agreements. 
• The role of federal agencies as rulemaking authorities and how presidents are using them to get things done without sending changes through Congress for approval
• President Biden's order to the FTC in July 2021 related to non-compete clauses
• The FTC's definition of a non-compete clause, what is included, and the definition of a worker as it relates to a non-compete clause
• What happens when an employer rescinds a non-compete clause
• The gaps in the current rules and regulations and how that impacts post-closing employment agreements
• A former commissioner's dissent to this rule
• When the proposed new non-compete regulation would take place and why it is a political process that will likely be an election year issue
• What business owners can do to address this issue on a practical level

Resources from this Episode

Federal Non-Compete Clause Rules: www.federalregister.gov/documents/2023/01/19/2023-00414/non-compete-clause-rule

Maine Legislature Non-Compete Clause Rules: legislature.maine.gov/legis/statutes/26/title26sec599-A.html

P.L. Chapter 118 - 
https://malloyfirmmaine.com/wp-content/uploads/2023/08/P.L.-Chapter-118.-Noncompetes-2023-1.pdf 

Website - malloyfirmmaine.com

Phone - (207) 333-6700

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Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.