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A 2023 petition to the FTC to ban non-compete agreements estimated that about 30 million workers (about 20% of all U.S. workers) were subject to a noncompete clause. [3] While higher-wage workers are comparatively more likely to be covered by non-compete clauses, non-competes covered 14 percent of workers without college degrees in 2018. [4]
[1] [2] However, many non-compete clauses apply to low-wage workers or individuals who do not possess transferable trade secrets. [2] The extent to which non-compete clauses are legally allowed and enforced varies under different jurisdictions. Some localities and states ban non-compete clauses or highly restrict their applicability.
In most jurisdictions, courts routinely "blue pencil" or reform covenants that are deemed not reasonable. The blue pencil doctrine gives courts the authority to strike unreasonable clauses from a non-compete agreement, leaving the rest to be enforced, or actually to modify the agreement to reflect the terms that the parties originally could have and probably should have agreed to. [3]
On April 23, the Federal Trade Commission (FTC) implemented a ban on noncompete clauses for most U.S. workers. The ban, which is likely to face legal challenges, prevents employers from putting ...
This question may be too far-reaching for you to answer out of hand, but my question is this, I have a noncompete agreement with a company that is subject to the governing law of the State of Ohio.
The rule banning non-compete clauses in contracts would apply to independent contractors or gig workers as well as W-2 employees. See: New Job Seekers in 2023 May Have an Advantage With These 5 ...
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