FTC Outlaws Most Noncompete Clauses

FTC Outlaws Most Noncompete Clauses

The Federal Trade Commission has outlawed the use of most noncompete clauses, freeing workers from restrictive agreements that often hampered their ability to change jobs or create new businesses in the same industry.

In a 3-2 vote, the commission issued a final rule, first proposed in 2023, that voids nearly all noncompete clauses and mandates that businesses that employ them tell workers that the clauses will no longer be enforceable 120 days after publication in the Federal Register.

The rule contains a draft letter that companies using noncompete clauses must send to affected workers. The letter makes it clear that they are allowed to seek and accept a job with any company or person, even if the firm is a competitor, and that they can start their own business, even if it competes with their current firm.

Some in the funeral service industry have used noncompete clauses, which can prevent licensed funeral directors from working in the same area as their previous employer or from opening a business that could be in direct competition. Some licensed funeral directors have hired counsel in attempt to break the clauses.

Specifically, the rule says it is an “unfair method of competition” for someone to:

  • Enter into or attempt to enter into a noncompete clause
  • Enforce or attempt to enforce a noncompete clause
  • Represent that the worker is subject to a noncompete clause

Overall, the new rule effects more than 30 million workers in the United States, including more than 3 million in New Jersey. The FTC found that the clauses depress salaries for workers and restrict their ability to find advancement in their industries.

The FTC said that current noncompete clauses for senior executives, who account for less than 1 percent of workers, will not be affected by the new rule. The commission concluded that senior executives are “less likely to be subject to the kind of acute, ongoing harms currently being suffered by other workers subject to existing noncompetes,” the rule states. Businesses, however, are forbidden from entering into new noncompete agreements with senior executives.

SCI Fined $23 Million for “Deceptive Marketing” in California

SCI Fined $23 Million for “Deceptive Marketing” in California

Mortuary Board • May 2024

Mortuary Board • May 2024

Colorado Legislature Approves Funeral Industry Regulation Bill

Colorado Legislature Approves Funeral Industry Regulation Bill

The Week in Funeral News, May 7, 2024

The Week in Funeral News, May 7, 2024

Orlando G. Covington Jr.

Orlando G. Covington Jr.

Lizabeth S. Konopka

Lizabeth S. Konopka

Published May 6, 2024

COVID-19 Deaths in New Jersey Decrease Steadily in 2024

COVID-19 Deaths in New Jersey Decrease Steadily in 2024

Published May 3, 2024

Former Mortuary Worker Pleads Guilty in Body Parts Scheme

Former Mortuary Worker Pleads Guilty in Body Parts Scheme

Published May 2, 2024

Who Will Be Our Voice?

Who Will Be Our Voice?

Published May 1, 2024

It Takes Two

It Takes Two

Published May 1, 2024

April Condolences

April Condolences

Published April 30, 2024

Thanexus LLC
2024 CEU
Passages
spacer module is 20px

Ask the Manager

The NJSFDA Manager of the Day program provides members with a resource for addressing and resolving problems that arise in the daily operations of their funeral homes. Here are some matters that were brought to the attention of the Manager of the Day in recent months.

Who Is Considered Medically Incapacitated?

We have a case where the decedent’s next of kin is physically incapable of signing the forms needed to execute arrangements. She has a person with power of attorney to help her. Can the person with POA sign or should we just move on to the...
Read the answer

Mailing Address vs. Residence on Death Certificates

A decedent used a PO box for a mailing address. Can this be entered as the address on the death certificate?

Read the answer

Disinterments with Court Orders

I’ve been contacted by our area medical examiner and law enforcement about disinterring the remains of an unidentified body. Law enforcement is seeking a court order for the disinterment. Do they also need a disinterment permit to remove...
Read the answer
Abigal-Successors To Edison Funeral Supply