Main Line: 479.443.2705
Fax Line: 479.443.2718
Email: info@rmp.law
Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000
On Tuesday, the Federal Trade Commission issued a new Rule putting an end to employment-related non-compete clauses. In its justification for the rule, the FTC called non-compete clauses “an unfair method of competition” and stated it is a “violation for [employers] to… enter into non-compete clauses (“non-competes”) with workers.” In today’s very competitive labor market, the new FTC Rule creates a significant disruption for employers.
This new FTC provision—set to take effect in 120 days—renders existing non-compete agreements unenforceable. Existing non-compete agreements with senior executives will remain enforceable, although employers cannot require newly hired senior executives to sign such an agreement.
After the Rule takes effect, employers are required to deliver personal notice to employees (past and present) who signed a non-compete agreement informing them agreements are no longer enforceable. In the notice, employers must inform employees they are free to accept any job or start any business, even if it is directly competitive with the employer.
Compliance with the FTC Rule is not optional. Employers should consider new ways they can protect against a former employee gaining a competitive advantage by using the employer- provided training, the relationships made possible by the employer, or the confidential information learned from the employer. RMP can assist you in navigating this disruption and can provide advice on how to most effectively protect your vital business interests going forward.
RMP Attorneys At Law has an experienced Employment Law Attorney team dedicated to helping you navigate these changes. If you have any questions or would like guidance, reach out to one of our employment attorneys, Tim Hutchinson, Seth Haines, Larry McCredy, or Taylor Baltz or call 479.443.2705.
RMP Law is excited to announce that our Little Rock Office will be be moving to the Simmons Bank building located off of Chenal Parkway. This move allows us more room to grow our footprint in Little Rock in order to meet our clients' and future clients' demands for quality legal services.
Starting October 1st, our new location will be:
RMP LLP
17901 Chenal Parkway, Suite 200
Little Rock, AR 72223
We look forward to welcoming you to our new location. If you have questions or need directions, visit us at rmp.law or call our office at 501-954-9000.
RMP Law is excited to announce that our Little Rock Office will be be moving to the Simmons Bank building located off of Chenal Parkway. This move allows us more room to grow our footprint in Little Rock in order to meet our clients' and future clients' demands for quality legal services.
Starting October 1st, our new location will be:
RMP LLP
17901 Chenal Parkway, Suite 200
Little Rock, AR 72223
We look forward to welcoming you to our new location. If you have questions or need directions, visit us at rmp.law or call our office at 501-954-9000.
Main Line: 479.443.2705
Fax Line: 479.443.2718
Email: info@rmp.law
Bentonville – 479-553-9800
Jonesboro – 870-394-5200
Little Rock – 501-954-9000
JOHNSON
5519 Hackett Street, Suite 300
Springdale, AR 72762
BENTONVILLE
809 SW A Street, Suite 105
Bentonville, AR 72712
JONESBORO
710 Windover Road, Suite B
Jonesboro, AR 72401
LITTLE ROCK
11601 Pleasant Ridge, #301,
Little Rock, AR 72212