Going off of the press release, it doesn't go into effect until 120 days after publication and doesn't apply to current senior executives which are defined as "workers earning more than $151,164 annually and who are in policy-making positions." I would also imagine that it will immediately be challenged in court.
I was under the impression that workers earning less than $151,164 annually usually don't have noncompetes anyway? Sounds like a lot of people will get bucketed into "senior executives" group. At least new noncompetes can't be created.
Non competes are everywhere. Famous case with Prudential Security[0] where they had everyone sign non competes, that includes minimum wage workers, and they enforced them, which put an outsized strain on the minimum wage workers in particular.
That's the motivation behind this rule. About one in six food outlets were demanding non-compete terms in employment, to prevent their employees from quitting to work for higher-paying outlets.[1] (Not McD and Burger King; mostly the smaller ones.)
I absolutely agree, but I make it a point to mention their limits of enforceability whenever I can because it is information worth spreading for those worried about one.
A stay on the ruling could happen, but that would be up to the courts. Not a lawyer, but considering that there could be damages from the removal of non competes and someone leaving to get another job, there could be a stay on the order rather than letting it go into effect. While it works its way up the court system.
