New Federal Law For Loan Officer Non-Compete Laws

[Brandon]

The Federal Trade Commission banned Non-Compete Employment Agreements nationwide. Here is the news release from the FTC banning Non-Compete Employment Agreements.

https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-rule-banning-noncompetes

ftc.gov

FTC Announces Rule Banning Noncompetes

Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamen

[Brandon]

FTC banned non-compete employment agreements effective August 2024 but lawsuits is expected opposition and appeal from the Chamber of Commerce. High paid employees making more than $150,000 are exempt.

https://youtu.be/RqzxWM4ugyM?si=wDnDZtW0q74r5RxA

[Sonny]

Great post, Brandon!

So happy to see that the Federal Trade Commission finally took a stand against the long-standing practice of businesses requiring exiting employees to sign a non-compete agreement in order to receive severance pay or other related compensation.

This is frequently associated with acquisitions, mergers, or other types of down-sizing. The issue that was created by the non-compete agreements, was that industry experts were prevented from continuing the activities they had spent a lifetime perfecting. While this may have been good for the business requesting the agreement, typically consumers would be negatively impacted due to the lack of competition and innovation.

Mortgage companies have used this practice for some time, especially in the most recent market down-turn with escalating interest rates. But clearly the issue (and new ruling) is much more broad than just our industry.

This is clearly a win for the
Consumer! 👍

See full article below:

https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-rule-banning-noncompetes

• This reply was modified 2 weeks, 1 day ago by  Sonny.

ftc.gov

FTC Announces Rule Banning Noncompetes

Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamen

[Mark]

After your explanation its making more sense. Thank you.

[Mark]

Quick question @SonnyW . Will this FTC Non-Compete Employment Agreements ban help former NEXA Mortgage President Mat Grella?

[Sonny]

Hey Mark! While I’m not familiar with the specifics of Mat Grella’s situation and whether it can help – this FTC ruling certainly will not hurt! Anyone that has had their options restricted by a non-compete stands to benefit.

[Stella]

I do think this ruling will only help Mat Grella only if he decides to be in the mortgage business like opening up another NEXA Mortgage.

[Lori]

Great news. Great information. Thank you for sharing @SonnyW