by Jonathan Young 

Many people employed via contract or even at-will employees have signed Non-Compete Agreements with their employers. These Non-Compete Agreements typically prohibit an employee from engaging in future employment with a competing company for a specified time and within a defined geographic restriction. To be valid and enforceable, these agreements must be clear and supported by independent consideration. 

Common phrasing of such a Non-Compete Agreement would often prevent an employee from working for any competing company entity within a specified locational radius of your current employer with the restriction to last one or two years.  

Courts have always looked at these Non-Compete Agreements with great scrutiny. Now, this employment law issue may be ripe for even further change.  

The Federal Trade Commission (“FTC”) has recently proposed preventing employers from entering into new Non-Compete Agreements with workers and requiring employers to rescind existing Non-Compete Agreements.   

The FTC estimates that eliminating Non-Compete Agreements would increase American workers’ earnings by over $250 billion annually. The FTC has already set forth the proposed rulemaking. They are now waiting for comment on the rulemaking before they go forward in 2024 to either adopt or reject the rule.   

At the initial public forum held by the FTC on the topic, there were far more parties than expected who came forward with criticism or support for the ban. The FTC will likely have to think carefully about this proposal, and they have postponed a final vote until sometime in April 2024.  

Here is a reference link for the proposed rule by the Federal Trade Commission. 

If you have a question about this or any other employment law matter, email or call Jon at any of our DBD offices.  

Jonathan Young, Partner

Jon is a local attorney with a downtown performance record. His practice covers a wide range of issues including personal injury litigation, general litigation, workers’ compensation, Social Security litigation, ERISA, wrongful discharge, and employment law claims.  

For three decades, Jon has been been a guarantor of fairness for local individuals. His pragmatic, worldly approach optimizes realistic, positive outcomes for his clients. 

Jon splits his time between the two DBD offices in Lansdale and Pottstown and the E. Kenneth Nyce office in Boyertown. Jon is even known to make a house call in a pinch. He is a Navy Veteran and is involved in many organizations.