The paint protection film (PPF) installers you train can now leave and start another shop right down the road—regardless of any prior agreement.

On April 23, the Federal Trade Commission (FTC) voted to ban employers from imposing noncompete agreements on almost all workers. The ban, which passed three to two, has already faced legal backlash.

According to the rule, employers must tell current and past paid employees, independent contractors and unpaid workers that they are no longer enforcing their noncompete agreements.

Those within the FTC who voted for the ban argued that noncompete agreements are “unfair” because they limit where an unsatisfied employee could find a new job.

Randy Humphries, owner of Tint Works in Murfeesboro, Tennessee, says the ruling won’t affect him much thanks to the way he words his contracts.

“If I start with training and you don’t have the skill—I write a contract that you’re going to pay me if you decide to quit,” he says. “If you go work somewhere real close, you owe me money for training you.”

He notes non-competes are hard to enforce.

“There are companies that will make you sign a non-compete but a lot of it is just scare tactics—most are unenforceable,” he says.

For senior executives, who are employees making more than $151,164 per year and in “policy-making positions,” current noncompete agreements remain, but future contracts will not be allowed.

The ban is supposed to take effect 120 days after it appears in the Federal Register, but the current legal action could change that deadline.

On the afternoon of April 23, the tax services and software company Ryan LLC filed a suit against the ban in Texas federal court. The company argued that the FTC was overstepping its authority.

On April 24, the U.S. Chamber of Commerce filed a suit regarding the ban in Texas federal court. It claimed the FTC is responsible for enforcing current antitrust laws, not defining other anticompetitive behavior.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *