Big Changes Coming for Non-Compete Agreements: Is Your Business Ready?

The Federal Trade Commission (FTC) has announced a big rule change starting later this summer, aiming to restrict the use of non-compete agreements. Even though some groups might challenge this rule, it’s important for businesses to start getting ready now.

What Does the FTC’s New Rule Mean for Your Business?

  • No More Non-Compete Clauses: You can’t use non-compete clauses with your workers anymore.
  • Existing Agreements Won’t Work: Any current non-compete agreements, except for some senior executives, will no longer be enforceable.
  • Inform Your Employees: You need to tell both current and former employees that their non-compete agreements are no longer valid.

How to Get Ready for These Changes with ESI’s HR Services:

  1. Make a Strategy Plan: Use our HR consulting services to create a strategy that fits your business. Look at how the rule will impact your company based on size and the number of employees with non-compete agreements.
  2. Prepare Over the Next Few Months: We can assist with reviewing all existing restrictive agreements. A proactive review will help you stay compliant and identify which agreements need attention under the new rule.
  3. Find Alternatives: Our legal experts can help you explore other options like customer non-solicitation or confidentiality agreements. These can protect your business interests with less risk.
  4. Review Other Agreements: Don’t forget to look at other agreements like non-solicitation or non-disclosure agreements. Please make sure they are compliant with the new rules.
  5. Protect Your Trade Secrets: Work with us to safeguard your trade secrets. We can help you implement robust policies, limit access to critical information, and set up strong security measures.
  6. Stay Informed and Prepared: ESI will monitor any developments with this FTC rule and update you. Contact us for professional PEO services if you have any questions or need guidance.

Get your business ready now to adapt smoothly to these changes. Ensure compliance and protect your interests effectively with ESI’s support.


CLICK HERE and enter “Complimentary HR Review of my Non-Compete document” under the Description section.

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Payroll Admin

Still doing your own payroll? Tasks involved with Payroll and Employee Administration are purely transactional events.

Human Resources

At ESI, our business is all about assisting with the management of any organization’s most valuable resource: people.

Employee Benefits

A benefit package can be a major incentive to lure the best new talent to your workforce and keep your current employees happy.

Risk Management

Risk is a basic part of business. As a co-employer we work to eliminate, mitigate or share your associated legal liabilities.

HCM Technology

ESI continuously utilizes the latest in technological advances through online and mobile solutions to make your life easier.