Non-Compete & Non-Solicitation Agreements in Kalamazoo

When a business and an employee have a non-compete agreement in place, and the employee violates the agreement, the business will generally have legal options available to try to enforce the agreement.

There are many different issues that can come up in litigation related to attempts to enforce a given non-compete agreement. One is whether the agreement in question meets the above-mentioned reasonability requirements.

Thus, in addition to potentially being very impactful on a company's competitive business interests, enforcement litigation regarding non-compete agreements can also be very complicated. Our Kalamazoo non-compete attorneys can provide assistance to businesses when it comes to legal matters regarding the enforcement of non-compete agreements.

How Does the FTC Non-Compete Rule Affect Agreements?

As the Federal Trade Commission’s (FTC) Final Non-Compete Rule approaches its effective date of September 4, 2024, employers must understand its implications and take appropriate action to ensure compliance. The rule, which broadly bans post-employment non-compete clauses, marks a significant shift in employment law, affecting a wide range of workers, including employees, independent contractors, interns, and even sole proprietors.

Key Provisions of the FTC’s Final Rule

Under the new rule, employers will be prohibited from entering or enforcing non-compete clauses with certain workers. 

The definition of "worker" is broad and includes:

• Employees
• Independent contractors
• Externs
• Interns
• Volunteers
• Apprentices
• Sole proprietors who provide services to persons

Employers must also take proactive steps to inform workers affected by the rule that their non-compete agreements will no longer be legally enforceable. This notification must be clear, individualized, and delivered by hand, mail, email, or text on or before the effective date.

A few limited exceptions to this broad prohibition exist, such as in cases involving the bona fide sale of a business or where there is an existing cause of action related to a non-compete clause before the rule takes effect. Additionally, employers with good faith belief that the Final Rule does not apply to their specific situation may also be exempt.

Preparing for Compliance

Legal challenges to the FTC’s Final Rule may be ongoing. Still, it is strongly recommended that employers begin preparing now to ensure compliance. This preparation includes reviewing and updating existing non-compete agreements and drafting the necessary notices for affected workers.

At Willis Law, our business law attorneys are well-versed in the complexities of employment agreements and are prepared to guide employers through the changes brought about by the FTC’s Final Rule. 

We offer comprehensive services to help employers:

• Review and update existing non-compete agreements to align with the new legal requirements.
• Draft clear and compliant notices to be delivered to affected workers before the September 4, 2024 deadline.
• Provide legal advice and representation in cases where exceptions to the rule exist or legal challenges are necessary.

By partnering with us, you can remain compliant while safeguarding your interests. We are here to provide the legal support you need during this transition.

Contact the Non-Compete Attorneys in Michigan

Whether you need assistance in drafting an agreement, reviewing an agreement or facing litigation, our lawyers can make sure your rights are protected.

Contact us at (888) 461-7744 for a free initial consultation with our Michigan non-compete lawyers. We have offices in Kalamazoo, Grand Rapids, and Paw Paw.