Donna Genie (presenter) explains a recent Federal Trade Commission action: the FTC has banned non-compete agreements. The speaker states the ban renders existing non-competes void and notes a limited caveat referencing senior management agreements, then discusses implications for employers who invest in training key employees. The tone is informational and cautionary for business owners.
Imagine you've just hired a key employee for your business. You've got them all trained and they understand your way of doing things and now they can just walk out and go to the competition and take all of their knowledge with them. Have you heard what the FTC has just done? Keep it in touch, Stick around. And let's talk about the new rules from the Federal Trade Commission. The Federal Trade Commission has banned non compete agreements. Now you can no longer require an employee to stay at your company or not compete with your company if they leave for any period of time. The only thing you can do is if you had senior management employees place and had non competes with them that are already in existence. But they're basically saying that all non competes right now, no matter when they were put in place, are void. They are not allowed to happen, they're banned. So you can no longer stop someone from going to work anywhere else. Nobody wants to invest a lot of money in a top performing executive only to have them be trained to go work for the competition down the street. As soon as they get everything on their brain as to how processes work, that's a little dangerous.
