Preparation Is Critical To Your Case

Preparation Is Critical To Your Case

The FTC reviews NCAs

On Behalf of | Apr 29, 2022 | Business Law, Employment Law |

President Biden signed an executive order in July 2021 designed to stimulate the economy by promoting competition. The Biden Administration appointed the Federal Trade Commission (FTC) to monitor the use of non-compete clauses or agreements (NCAs) that will limit employees from working at other companies to further their careers. If you’re a Georgia resident, here are some essential things to know about business litigation according to new government statutes.

The FTC’s actions

Part of the reason for the delay in the FTC’s actions in terms of business litigation is likely due to vacancies. The FTC has currently been operating with only four members: two are Republicans and two are Democrats. There is one vacancy in the FTC, which means the organization is faced with a political tie. This means it can be difficult for the Federal Trade Commission to make decisions that will profoundly affect the American public. The President has recently nominated Alvara Bedoya to fill the fifth position at the FTC. Bedoya’s confirmation is pending.

However, the FTC is working to lay the foundation for facilitating formal proceedings. The agency recently held a series of workshops and fact-gathering sessions for ways to make professional competition work in the economy while protecting the welfare of employees.

Actions Congress is taking

Congress is taking action when it comes to business litigation by giving NCAs another look. Congress has promoted the Freedom to Compete Act and the committee is reviewing the act. The Freedom to Compete Act is bipartisan and will pinpoint how NCAs are used in employment contracts. This act also voids all NCAs enforced before the Act and will stop these agreements from being valid going forward.

A non-compete agreement is generally defined as the agreement between a company and an employee that indicates that after termination, the employee is restricted from working for another competing company. The NCA can be for a specific timeframe or apply to a certain region. The Freedom to Compete Act is still pending.