FTC Proposed Ban on Non-Competes - Will it Harm Competitive Advantage in the Workplace?



On Jan. 5, the FTC proposed a rule that would prohibit employers from imposing noncompete agreements on workers, calling such clauses “an unfair method of competition” and saying they prevent the forming of new businesses and result in lower wages for all workers. The Comment Period closes on March 20 and several manufacturing trade groups are asking it to be extended by 60 days, as the proposal would have far-reaching legal consequences for manufacturers, including risks to intellectual property. Among the issues raised by the FTC action is whether the Commission has the legal authority to issue such a rulemaking, the rule’s potential preemption of the numerous state laws and regulations on this issue, and how such preemption will alter the regulated community’s legal obligations. Read more on this action by clicking here.

U.S. Businesses Face Higher Federal Tax Bills In 2023

The federal tax burden on US businesses in 2023 will increase as a result of the current administration. The heftier federal tax bills employers face this year are primarily derived from implementation of the 2022 Inflation Reduction Act (IRA) and the phasing out of temporary provisions in the 2017 Tax Cuts & Jobs Act (TCJA). While the federal government is imposing a larger burden on businesses, state-level tax cuts that recently kicked in are providing countervailing relief in many parts of the country. In fact, 2023 began with business tax reduction of some form taking effect in many states. Full article here.

6 Manufacturing Insights from Q1 2023 and What They Mean for You

A slower growing economy and excess inventories have resulted in the manufacturing sector surveys signaling a contraction for consecutive months, the first time since the COVID-19 pandemic. Coupled with rising interest rates, corporate deal makers are now uncertain what lies ahead and have reduced 2022 M&A activity. The silver lining is that slower economic growth and rising interest rates have reduced inflationary pressures as input prices and shipping costs have declined considerably. Thanks to the Infrastructure Investment and Jobs Act that was passed in 2021 and the Inflation Reduction Act of 2022, 2023 is also set to have a wave of new government contracts up for bid. Full story here.