Dryden said the impact will be felt both by companies with employees who are governed by noncompetes as well as companies hiring workers currently bound by them. “This regulation will affect, more or less, every business in the country,” he explained.
Dryden recommended that companies take advantage of the FTC’s 60-day comment period to make clear their position on the rule. “If you think this will do harm to your legitimate business, submit comments to the FTC explaining your thoughts,” he noted.
Dryden explained that while “there was clearly momentum building toward this,” he “wouldn’t be surprised if the FTC ends up scaling back this regulation.”
As many states already limit noncompete agreements, Dryden said it is not unexpected that the federal government is testing a blanket ban.
“It’s too early for businesses to take any drastic action, but companies should be mindful that’s a real risk,” he added.
