top of page

FTC To Host Webinar on New Non-Compete Rules May 14 at 11 AM


The Federal Trade Commission will host an online compliance webinar on May 14, 2024, at 11 AM ET to provide an overview of the FTC’s final rule banning post-term non-competes, which will include information on how to comply with the rule after its effective date.


The webinar is free and open to the public. Staff of the FTC’s Office of Policy Planning will provide an overview of the rule and will answer questions submitted prior to the webinar. The webinar is expected to last 45 minutes.


A LINK TO THE WEBINAR WILL BE AVAILABLE ON THE DAY OF THE EVENT, SHORTLY BEFORE THE WEBINAR STARTS VIA FTC.GOV.


The webinar will be recorded and available on the Commission’s website after the meeting.


The FTC invites members of the public to submit questions ahead of the webinar by email at asknoncompete@ftc.gov


As we noted last week, post-term non-compete provisions have been illegal in New York since 2008.  However, under New York law, stations could still use the term non-competes for managers. The FTC’s regulations pre-empt state laws. The new FTC regulation would ban any new non-competes, even for managers, once the rules go into effect (about 120 days).


Under the FTC regulations, existing manager contracts would be grandfathered but only for those managers that meet the definition of “Senior Executive.” To be a “Senior Executive,” the manager must be in a policy-making position and earn at least $151,164. If a manager does not meet these requirements, the post-term covenant not to compete may no longer be enforceable. If an existing manager meets these requirements, then the existing contract, including the post-term non-compete provision, would remain in place. This is a one-time grandfather. Once the rules become effective, stations can not use a non-compete provision in any employment contract, even for “Senior Executives."


It's worth noting that the FTC’s decision will be the subject of numerous lawsuits. There is a long way to go on this issue. 


You can find more information about the webinar from the FTC here.


You can see the FTC’s primer devoted to small business here.

1 view

Comments


bottom of page