For many small, innovative businesses, noncompete and nondisclosure agreements ensure fair competition against larger companies, but a balanced, comprehensive solution remains outstanding.
Earlier today, NSBA submitted formal comments to the Federal Trade Commission on their proposed new rule that would ban companies from requiring their employees to sign non-compete agreements. Oversight of these type of agreements typically has been dealt with at the state level, however the FTC rule proposes a unilateral change that would give them this oversight. For many small, innovative businesses, noncompete and nondisclosure agreements ensure fair competition against larger companies who have greater ability to lure employees—and their working knowledge of the company—away from a smaller competitor.
In addition to its comments to the FTC, NSBA has released a survey on how small businesses utilize noncompete and nondisclosure agreements which shows that the size of the business greatly impacts how likely they are to utilize—and successfully enforce—such agreements.
If you haven’t yet filed comments, there’s still time and NSBA is here to help. We have developed template comments that you can personalize and send in through our Action Center. Act soon – the deadline is TODAY, April 19!