FP Workplace Law Forecast 2024

What Will 2024 Bring?

Look for Customer-Based Restrictions More states will continue the trend of limiting broad non-compete agreements with their employees. Customer-based restrictions will probably fare better than territorial-based restrictions. Businesses should aim to refocus their efforts on the types of restrictions likely to be upheld by courts in this era of tight scrutiny. Lower Wage Earners to Receive Greater Protections More states will look to minimum-income requirements for which employees can have restrictive covenants imposed on them. This is consistent with President Biden’s view of non-competes – and we may even see the FTC follow that path when it comes to finalizing its non-compete rule. The real question will be what kinds of restraints will be viewed as non-competes.

AI Focus Automated Monitoring and Detection

AI will enhance employers’ capabilities to monitor and detect potential breaches of non-compete agreements and trade secret violations to a new level in 2024. Advanced algorithms can analyze patterns in employee behavior, communications, and data access, alerting you to unusual activities that may indicate a risk of defection or information leakage. Predictive Analytics for Employee Retention AI tools will increasingly be used to predict employee defection before it occurs. By analyzing factors such as job satisfaction, performance metrics, and personal circumstances, AI can provide employers with insights on which employees are at risk of leaving – and possibly violating non- compete clauses. This allows for proactive measures to retain talent or safeguard sensitive information.

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