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White Out Noncompete Agreement

White Out Noncompete Agreement

Aug 6th, 2022

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How to White Out Noncompete Agreement

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The Federal Trade Commission (FTC) estimates that nearly $300 billion in annual earnings may be lost due to noncompete agreements, affecting not only those directly bound by them but also surrounding workers. The FTC's new proposal seeks to ban these clauses federally, following some states that have already rendered them unenforceable. This ban is expected to benefit workers by encouraging companies to explore innovative methods for employee retention. Noncompete agreements typically prevent workers from joining competitors immediately after leaving their jobs, exemplified by Amazon's 2018 clause, which stipulates a waiting period before transitioning to a rival. Challenges to implementing a federal ban remain.

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Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

Is there a way out of a non-compete?

Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.

How do you negotiate out of a non-compete?

Ask for an explanation of the companys interests in having you sign a non-compete agreement. If the company is concerned about protecting trade secrets, it might agree to replace a non-compete clause with a beefed-up nondisclosure clause that would prevent you from taking research with you.

What would void a non-compete agreement?

It is possible to find non-compete loopholes in certain circumstances in order to void a non-compete contract. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.

Is Biden getting rid of non-compete?

Biden directed the Federal Trade Commission to ban or limit noncompete agreements in 2021 as part of a wider effort to improve competitiveness for workers.

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