News & Observer Quotes Zeb Anderson on Possible Non-Compete Clause Ban

News and Observer

The Federal Trade Commission (FTC) has moved to ban non-compete clauses between employers and workers, but as Smith Anderson attorney Zeb Anderson told the News and Observer of Raleigh, the new rule is facing legal hurdles.

Non-competes affect roughly 30 million Americans, the N&O reports, and the FTC’s rule effectively bans noncompete clauses for almost all workers, including independent contractors.

“I think it’s very, very premature to assume (non-competes are finished),” Zeb, who has closely followed the non-compete controversy, told the N&O. “It’s very much we need to wait and see.”

Organizations like the U.S. Chamber of Commerce have already filed lawsuits to block the rule, which, in addition to banning new non-competes, would make non-competes that are in place on the rule’s effective date unenforceable for all workers, other than certain “senior executives.” The regulatory definition of senior executives is complicated and includes requirements that the person be in a “policy-making position” and receive total annual compensation of at least $151,164.

The ban would also establish that employers are in violation of  the rule by attempting to enforce an invalid worker non-compete or representing that any worker who is not a “senior executive” is subject to a non-compete.

Zeb devotes his career to the representation of private and public employers in connection with all aspects of employment-related litigation. He has represented employers in state and federal courts and before government agencies throughout North Carolina and in other jurisdictions across the country.

The entire N&O story can be viewed here.


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