Take This Job and Shove It!

I hope everyone enjoyed their Holidays and wish you the best for 2023.  Its time to get back to work with the General Counsel Corner.  Last week, the U.S. Federal Trade Commission published a notice of a proposed rule to outlaw non-competes in employment agreements.  The rule would apply to all types of workers including W-2 employees, independent contractors and interns.  Any State laws would be superseded by this new business restriction.  Exceptions have been put in place for business owners that stay on as an employee after the sale of the business or when an employer pays to train a new hire. 

The big question with this new rule is will it survive a challenge based on a little thing called the Constitution.  Legal arguments based on separation of powers (the FTC is independent regulatory body subject to review by the Legislature and this type of power is probably not part of what Congress delegated to them) and/or the right of an individual to enter into a contract will most definitely be made by opponents.    

Time will tell if this rule passes the Constitutional smell test.  However, if it does, there are certain to be more employees that are going to tell their employers to “Take this job and shove it” (David Allen Coe, 1977). 
 
Other items of interest:

• Transforming and Elevating Your Finance Function Webinar (RKL CPA 2/1/23; 11am-12pm)
• Long-Awaited Fall Regulatory Agenda Provides Glimpse of Administration’s Regulatory Goals | Littler Mendelson P.C.

As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com), Erik Spurlin (espurlin@mpl-law.com), Brad Leber (bleber@mpl-law.com) or anyone in our office with questions or comments.   

Please see all of our prior updates at this link or if you would like to be added to our email list, please click here.