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Are the House and Senate Trying to Ban Your Noncompete Agreements?

Mar 01, 2023

The House and Senate have recently introduced a bill that would ban noncompete agreements.


The Federal Trade Commission (FTC) recently announced a proposal, which would eliminate noncompete agreements, except in limited situations.


The proposed Workforce Mobility Act of 2023, by the House and Senate, would disallow individuals and businesses entering, enforcing, or attempting to enforce noncompete agreements. The FTC’s proposal would apply to past, present, and future noncompete agreements, while the Workforce Mobility Act would only apply to those agreements entered after the bill is enacted.

The proposed bill provides three limited exceptions in which noncompete agreements would still be valid:

  • When the sale of goodwill or ownership interests in a business takes place, the buyer could include a noncompete provision in the contract to bar the seller from running a similar business in the same geographic area.
  • A buyer or seller of goodwill or ownership interests in a business could enter into a severance agreement with senior executives including a noncompete provision that applies for up to one year, only in the geographic region where the company previously operated. Such an agreement must provide for severance payments of at least one year’s salary or compensation if employment is terminated.
  • Noncompete provisions would be allowed for the purpose of stopping departing partners from running similar businesses in the same geographic area if the partnership is dissolved.


This bill would create a private form of action for the individuals against employers for violations of the bill. Recovery would encompass actual damages and attorney fees.


Moreover, state attorneys general could in fact bring claims against the employers as well for violations of the proposed bill.


This is an update from our January 11, 2023 post, titled The FTC Proposes Rule to Ban Noncompete Clauses for all US Workers. Click here to read that post!


If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.

ALERT: EEOC Releases Workplace Guidance to Prevent Harassment

01 May, 2024
On April 29 th , 2024, the U.S. Equal Opportunity Commission (EEOC) finalized their guidance in harassment in the workplace after receiving and responding to nearly 38,000 public comments on the proposed guidance released on October 2, 2023. The renewed guidance provides numerous clarifying hypotheticals, and addresses more recent issues including protections for LGBTIQA+ employees and remote work. Of note, the EEOC clarified the scope of sex discrimination and harassment, stating that federal protections under Title VII extend to LGBTIQA+ employees. Specifically, the EEOC made clear that the scope of harassment extends to repeatedly and intentionally misgendering employees or denying access to bathroom facilities that align with their gender identity. Further, this guidance reminds employers that discrimination and harassment based on “sex” includes harassment based on pregnancy, childbirth and related medical conditions, which include employees’ decisions related to contraception and abortion. Several public comments suggested that these guidelines infringed on free speech and religious rights. The EEOC did not directly address these concerns, instead stating that free speech and religious rights issues are fact-specific and would be addressed on a case-by-case basis. Further, the EEOC updated guidance related to the remote work environment. The EEOC clarified that conduct in a virtual work environment, including electronic communications using private phones, computers, or social media accounts can contribute to a hostile work environment if they impact the workplace. The EEOC also clarified that conduct occurring outside of the workplace, including on social media, which does not target the employer or its employees and is not brought into the workplace generally will not contribute to a hostile work environment. Finally, the EEOC updated its Anti-Harassment Policy Requirements, stating that an anti-harassment and discrimination policy should be widely disseminated to employees, in a manner that is understandable by all employees and includes i) a definition of prohibited conduct, ii) a requirement that supervisors report harassment, iii) multiple avenues for reporting harassment, iv) a statement that clearly identifies accessible points of contact for reporting purposes, and v) an explanation of the complaint process, including adequate anti-retaliation and confidentiality protections, and prompt and effective investigation and corrective action. You can read more about the EEOC's ruling on their website by clicking here . If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.

Non-Compete Agreements Are in Jeopardy

26 Apr, 2024
On April 23, 2024, the Federal Trade Commission (“FTC”) issued a final rule banning non-competition agreements for all employees except for very narrow exceptions. The FTC’s Final Rule banning all non-competition agreements is effective 120 days after its publication in the Federal Register, which is expected in the next few days.  As of the effective date, all non-competition agreements are banned, except for franchisor/franchisee relationships and for sales of a business between buyer and seller. The FTC’s Rule is retroactive, prohibiting certain non-competition agreements before the effective date of the Rule as well. Existing non-competition agreements can remain in effect as to senior executives, which are defined in the Rule as employees in “policy-making positions” making at least $151,164 annually. The FTC’s Final Rule is already being challenged through the court system and a challenge from the Chamber of Commerce will most likely follow suit. Therefore, if an employer has existing non-competition agreements, the employer may not need to rescind them just yet. Stay tuned for updates as these challenges take their due course.
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