As delineated in a previous Client Advisory, the FTC voted to prohibit non-compete agreements, affecting tens of millions of workers. While exemptions were made for senior executives, the ban will have significant implications for the telecom industry, particularly for VoIP providers and related companies.
If the non-compete ban survives legal challenges that are already being pursued, it will take effect on September 4, 2024, 120 days after publication of the final rule in the Federal Register.
The ban’s enforcement will directly affect companies in the telecom industry, including interconnected Voice over Internet Protocol (I-VoIP) providers, telecom equipment manufacturers, and Software-as-a-Service (SaaS) companies. While common carriers under Title II are exempt, other entities must ensure compliance with the new regulations.
The evolving regulatory landscape presents challenges for affected businesses, especially those offering a mix of exempt Title II telecommunications services and non-exempt VoIP or other communications services. Understanding federal and state regulations is crucial for navigating these complexities effectively.
The CommLaw Group Can Help!
Determining if your business is covered by the non-compete ban can be particularly challenging if your company offers a combination of exempt Title II telecommunications services alongside non-exempt VoIP or other communications services: especially, if the same contractors or employees have responsibilities relating to both regulated and unregulated services. Our firm stands by ready to help you navigate these complexities. If you have questions or concerns about how the non-compete ban may affect your business or what your company must do to comply, please contact Jonathan Marashlian at (703) 714-1313 or jsm@commlawgroup.com.
