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New Ruling Makes It Easier To Get A Job In New York
A new ruling by the Federal Trade Commission will make it easier for employees to get a new job in the same field.
Earlier this week, the Federal Trade Commission ruled 3 to 2 to approve a new rule that will ban companies from using noncompetes.
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The new rule will go into effect in 120 days and will only apply to non-senior executives.
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WHAT IS A NONCOMPETE?
A noncompete is a clause in an employment contract that prevents a worker from leaving their current job and going to work “competitor” companies in the same field.
WHY WILL THE NEW RULING HELP EMPLOYEES
The new ruling that voids noncompetes will allow employees to take job offers right away from other companies. Previous noncompetes could force employees to "sit out" for up to a year or more before taking a new job in the same field.
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HOW MANY EMPLOYEES WILL BE AFFECTED BY THE NEW RULING?
According to the National Employment Law Project's website, around 30 million workers, or around 18% of the U.S. workforce have signed noncompetes as part of their employment agreement. WAS THERE A LAWSUIT FILED TO STOP NEW RULING? It is being reported that several business organizations have filed a lawsuit to stop the ruling made by the FTC.
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