Did you know that for the past year, it has been illegal to bind any employee but senior executives with noncompete agreements? It’s true. Since September 4, 2024, the Federal Trade Commission (FTC) both barred noncompetes for any employee who is not a senior executive and made any existing noncompete agreements for that group unenforceable.
Although many businesses may have informed workers bound by noncompetes of the agreements’ unenforceable provisions, some may have lagged behind on updating all their contracts, business documents and company handbooks.
Why outdated documentation is bad
From a perceptual standpoint, it screams that your outfit is behind the times and doesn’t appear to care. Potential clients may surmise that lax attitude could prevail with your company’s performance.
Factually incorrect contracts can also be easier to challenge legally than those with every “i” dotted and “t” crossed.
One chance to make first impression
With every employment situation or potential client encounter, companies have but one attempt to nail that first favorable impression. If they are met with outdated and inaccurate documents, it can adversely affect the relationship.
Make your company compliant
It’s important to stay abreast of any regulatory and other changes to federal and Texas laws that can affect your industry and your company’s bottom line.
Make sure that your business contracts reflect the current circumstances, so your company stays compliant with all industry regulations. Arrange for a document review to exclude noncompete clauses from the protected employees from all your contracts, employee handbooks and other documents.