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What the FTC Ban on Non-Compete Clauses Could Mean For You New!
Categories: Building Service Contractor, Business Management, Government Affairs, Straight Talk!
By Jeff Cross | May 7, 2024 << Back to Articles
The impact of the Federal Trade Commission (FTC) on banning non-compete clauses has created concern and spawned many comments from business owners and employees.
Some welcome this change, saying it will open up the labor pool and allow employees to move around from one job to the next with no restrictions. Others, specifically business owners and executives, fear this may lead to losing valuable employees to their competition, perhaps with departing employees taking client information with them. Even worse, some fear losing company secrets, as an employee may depart for a position with a rival firm. And all of this also opens up the possibility of an employee starting his or her own company, using what they have learned from their previous employer to their advantage.
What has the industry said? In a recent online poll published by ISSA, the majority (53%) of respondents said they were pleased with this FTC ruling. They indicated that it opens up the labor pool, bringing more applicants to their companies. Nearly a quarter (24%) said they didn’t see it impacting them, and 15% were concerned with staff retention.
In this episode of Straight Talk!, Scott Tackett, a business development advisor with Violand Management Associates and an industry expert in human resources issues, shares his thoughts and concerns as they relate to the cleaning and restoration industries. Watch the video or listen to the podcast below.
About the Author.
Jeff Cross is the ISSA media director, with media brands that include ISSA Today, Cleaning & Maintenance Management, and Cleanfax. He can be reached at [email protected] or 740-973-4236.
