The Federal Trade Commission recently proposed a new rule that would ban companies from issuing non-compete agreements with their employees. Proponents say it will stop a system that companies often use to stifle wage growth and prevent entrepreneurs from creating competition. The commission anticipates the moves could increase wages and expand career opportunities for roughly 30 million Americans.
While that sounds good, roofing contractors and other company owners should know it could make employee retention harder in an industry already starved for skilled workers.
“This is a big deal,” Cotney said in this brief videochat with W&C Publisher Jill Bloom. “For companies using them to make sure their C-level people in place and that their critical people are there, this creates an interesting dynamic.”
The FTC is currently seeking public comment on the proposal and Cotney said he expects the ruling to be challenged in court.