Jason Leverant, the President and COO of the AtWork Group, a national staffing firm, discusses the implications of the Federal Trade Commission’s ruling on non-compete agreements for business services franchises. He believes that non-compete agreements can hinder employees’ career progression and limit their opportunities. The new ruling aims to ban employers from using non-compete clauses in worker’s contracts, which the FTC claims suppresses wages and blocks entrepreneurs from starting new businesses. The goal is to bolster wages and expand career opportunities for workers.
Non-compete agreements are often used by businesses to protect trade secrets and limit employee turnover. The FTC’s new rule prohibits employers from using non-compete clauses as part of their worker’s contracts. While the ruling only applies to workers, the International Franchise Association has encouraged the FTC to reject future bans on non-compete clauses in franchising agreements. States like California, Colorado, and others have already taken steps to ban or restrict non-compete agreements in various industries.
In response to the FTC’s ruling and changing state laws, businesses need to adapt their employment contracts and focus on employee retention strategies. Leverant recommends modifying employment contracts to drop non-compete clauses to provide employees with more flexibility. Employee engagement is crucial to retaining talent, and businesses should offer competitive salaries, benefits packages, and workplace flexibility to keep employees satisfied. Creating a positive workplace culture can also contribute to long-term job satisfaction.
To protect their business interests, employers should enforce non-solicitation and confidentiality agreements when necessary. While giving employees the freedom to explore new opportunities is important, businesses must also safeguard their intellectual property and relationships with customers. With the average employee holding multiple jobs throughout their career, allowing flexibility can help retain talent and ensure business success in the long run.
Overall, businesses in the staffing industry need to stay proactive in complying with evolving guidelines to improve talent acquisition, retain employees, and protect their business. By dropping non-compete agreements from employment contracts, focusing on employee retention strategies, and creating a positive workplace culture, businesses can adapt to the changing landscape and secure highly skilled employees. Enforcing non-solicitation and confidentiality agreements, as well as providing flexibility for workers, can help ensure the continued success of businesses in the staffing industry.
