On Tuesday, April 23rd, the Federal Trade Commission (FTC) issued its final rule that will ban employers from requiring that employees sign a non-compete clause agreement.
While there have been mixed reviews on the subject, the main focus for small business owners should be to prepare and adapt to the change as best as possible for the wellness of their company.
Review Current Contracts and Update if Necessary
With the help of your HR provider, meticulously go over each of your employees' agreements (specifically any non-compete clauses). As part of the new rule, existing senior executives with noncompetes can remain in effect, however, it no longer applies to any other employee.
After you've reviewed all agreements, consider incorporating protective strategies that remain lawful such as a garden leave clause.
Double Down on Employee Retention
Employees stay with a company when they're paid fair/over market salary, have a wonderful benefits package with the company, and feel valued.
A huge way to show your employees that you value them is to incorporate or beef up the learning and growth opportunities that your company offers.
Sit down with your HR provider to analyze your current total benefits package and determine which areas can be improved to ensure tenure with your employees.
Protect Secrets/Confidentiality
Although an employee may choose to work for a competitor in the absence of a non-compete clause, it should still be a requirement that trade secrets, company functions, and intellectual property remain solely amongst the members of your staff.
This is accomplished with Confidentiality and Non-Disclosure Agreements that protect your company if any information is accidentally or purposely breached.
Set a policy that clearly defines what is expected of the employee (the return of equipment, etc.) should they decide to leave the company.
Stay Positive
As an employer, do the best you can to remain positive during a time of uncertainty. Follow the golden rule, "Treat others as you'd want to be treated" and remain loyal to your employees.
There's nothing to worry about if you're transparent and continue to invest in your employees. They will invest right back into you!
Contact us by clicking the link below and schedule your complimentary consultation to discuss what Elevated HR can do for you!