What We're Watching | Week of August 1, 2022
What We're Watching, a weekly summary from the team at Boss Consulting HR, to highlight the ever-moving parts that is Human Resources.
Non-Compete Agreements – Overused and harmful, the rules may be changing.
The Federal Trade Commission (FTC) is making moves this week. In a new consideration, the FTC is moving to limit the use of non-compete agreements in an effort to curb unfairly limited worker mobility.
Until now, non-competes have been monitored on a state level. But the excessive use of non-compete agreements in recent years has led to the need for action on the federal level.
In the past, senior execs were often saddled with non-completes. This was standard practice and, at that level, fair practice. But in recent years, the use of non-competes has become more and more widespread, extending to low-wage workers. Employees, such as coffee baristas, have been held in non-compete agreements and barred from seeking similar work elsewhere. This level of overuse has strayed into harmful territory according to the FTC.
So far no formal federal action has been taken, but we urge you to prepare for potential new changes to non-compete agreement use. Review your policies so you’re ready when changes do take place.
CROWN Act Signed Into Law
Update and Educate – It’s time to review your workplace discrimination policies.
Massachusetts has officially signed the CROWN Act (Creating a Respectful and Open World for Natural Hair) into law. The Act “bans discrimination based upon natural and protective hairstyles in workplaces, school districts, and certain school-related organizations.”
Massachusetts follows more than a dozen other states in prohibiting discrimination on the basis of hair texture or hair styles associated with race. A Federal CROWN Act could soon become law, having already passed the House and awaiting a decision in the Senate.
With the CROWN Act now in effect locally, it is time to review both your discrimination and grooming policies to ensure you’re in compliance. We recommend putting training in place on these new policies for any manager, supervisor, and those responsible for the hiring process. For more information on the CROWN Act, click here.