How US changes to 'noncompete' agreements and overtime pay could affect workers
For millions of American workers, the federal government took two actions this week that could bestow potentially far-reaching benefits
NEW YORK — For millions of American workers, the federal government took two actions this week that could bestow potentially far-reaching benefits.
In one move, the Federal Trade Commission voted to ban noncompete agreements, which bar millions of workers from leaving their employers for a specific period of time. The FTC's move, which is already being challenged in court, would mean that such employees could apply for jobs they weren’t previously eligible to seek.
In a second move, the Biden administration finalized a rule that will make millions more salaried workers eligible for overtime pay. The rule significantly raises the salary level that workers could earn and still qualify for overtime.
The new rules don’t take effect immediately. And they won't benefit everyone. So what exactly would these rules mean for America's workers?
Noncompete agreements, which employers have deployed with greater frequency in recent years, limit an employee's ability to jump ship for a rival company or start a competing business for a stated period of time. The idea is to prevent employees from taking a company's trade secrets, job leads or sales relationships to a direct competitor, who could immediately capitalize on them.
Many industries use noncompete agreements, often among their salespeople, said Paul Lopez, managing partner at Tripp Scott, a Florida law firm that has handled more than 100 cases involving noncompete clauses.
“They’re the ones out there generating leads and sales,” Lopez said. “The last thing you as a business will want is for that person to go over to your competition and do
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