Noncompete Clauses Banned
MEASURES EMPLOYERS MUST TAKE
Social media has changed the way businesses market themselves and their products. Instead of relying on word-of- mouth or spending exorbitant sums of money on television, radio, or print advertising, businesses can now create social media pages, giving customers a direct line to everything going on with the company. Many businesses focus on amassing more followers on X (formerly Twitter), Facebook, LinkedIn, and Instagram. However, having an account isn’t enough to bring more attention to your business. You must utilize a carefully crafted social media plan to maximize your presence and potential. With the rise of social media came influencers, people with large social media followings who used their platform to drive attention to ideas, businesses, and products. Influencers aren’t anything new; companies have used celebrities to advertise their products and services since the 1800s. These days, hiring a well-known celebrity to showcase your product or service costs an astronomical amount, likely more than the average business owner can pay. That’s where social media influencers come into play. Social media influencers are everywhere; you can’t scroll through Instagram for more than 10 minutes without one of their sponsored posts showing up in your feed. Some of these influencers have hundreds of thousands, if not millions, of followers, but you don’t need to hire the most prominent influencer to connect with potential customers and promote your brand. Realistically, you only need to find the right micro-influencer to get the most out of your social media marketing efforts. You’re probably wondering, “What is a micro-influencer?” They’re lesser-known influencers with followers between 10,000 and 100,000 across various platforms. While they might have a smaller audience pool, micro-influencers often have a much SMALL FOLLOWING, BIG IMPACT How Micro-Influencers Can Drive Business Growth
As of Sept. 4, the majority of noncompete agreements, also known as noncompete clauses, are a thing of the past. According to the Federal Trade Commission (FTC), before the ban was ratified, around one in five American workers were bound by a noncompete clause at any given time. Now, unless you qualify as a senior executive, your noncompete clause may be null and void. Here is what you need to know about the ban, and what measures you should take to rectify your documentation and employment agreements. The Details of the Ban What the FTC calls the final “Noncompete Rule,” is, in effect, a comprehensive ban on new noncompete clauses, with the exception being senior executives (who they estimate make up less than 1% of the
workforce). The FTC estimates that this ruling will add over $250 billion in earnings to the American workforce every year. They argue that noncompetes
stifle competition and prevent workers from seeking out better jobs with superior pay and benefits in their respective industries.
Employers may argue that it opens the way for difficulties in retaining staff, maintaining trade secrets, and competing against larger corporations in specialist fields with access to greater resources. Our feelings about
this change, however, are irrelevant. What’s important is how we mitigate the issues that arise for our clients in the wake of the new rules. Measures to Take The Noncompete Rule requires employers to provide notice to their employees regarding the new prohibition on noncompete clauses, and to inform them that any noncompete clauses they are currently bound by cannot legally be enforced against them. The FTC also advises that businesses not include noncompete clauses in future employment contracts, documentation, or on their websites. In the future, it is important to know that you will only be able to enforce existing noncompete clauses for senior executives, and no other employees. If you would like to know more, feel free to reach out to us at 469-715-4558.
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