The Chaos of FTC's Non-Compete Ruling: Enforceability, Carve-Outs, and Political Implications

Greg Brown dives into the complexities of the FTC’s recent ruling on non-compete agreements, highlighting its impact on executives, salespeople, and the business landscape. We explore the use of carve-outs, the enforceability of non-competes across states, and the potential chaos that may follow. This conversation provides a nuanced view on how labor unions and political dynamics could shape the future of non-competes, with a humorous nod to the upcoming elections. In this episode we look at non-competes, FTC ruling, enforceability, carve-outs, business divorce, litigation, and compliance. Greg Brown shares insights on how these legal shifts may disrupt business practices and affect the broader HR and Talent Acquisition landscape. Key Takeaways Non-competes are often enforced against salespeople and executives, especially in business divorce cases. The enforceability of non-competes varies significantly by state, with some states requiring additional consideration at the time of signing. Carve-outs are a strategic way to make non-competes more enforceable by narrowing down restrictions. The FTC’s recent ruling on non-competes is seen as politically motivated and may face significant legal challenges. The proposed rule could create chaos, leading to increased litigation and compliance issues for companies. Labor unions may back the rule as it could empower employees to negotiate better wages without being bound by non-compete agreements. Chapters 00:00 Who is Greg Brown? 07:39 Enforcement Against Salespeople 30:10 Senior Executives and the Enforcement of Non-Competes 37:29 Predictions for the Future and Potential Chaos Connect with Greg here: https://www.hwhlaw.com/people-Gregory-P-Brown Connect with WRKdefined on your favorite social network The Site | Substack | LinkedIn | Instagram | X | Facebook | TikTok Share your brand across the WRKdefined Podcast Network Learn more about your ad choices. Visit megaphone.fm/adchoices