Non-Competes in the Hair Industry: What You Need to Know (and Why You Might Be Freer Than You Think)

Are you a hairstylist feeling trapped by a non-compete agreement?

Worried about the legal ramifications of leaving your current salon?

The good news is that the landscape of non-competes is changing, and you may have more options than you realize.

The Changing Legal Landscape of Non-Competes

Non-compete agreements have long been used to restrict employees from working for competitors or starting their own businesses within a certain geographic area and time frame. However, recent legal developments are shifting the power back to employees, especially in the hair industry.

Key Legal Updates:

• Federal Trade Commission (FTC) Proposed Ban: The FTC has proposed a nationwide ban on non-competes, deeming them an unfair method of competition. While not yet finalized, this proposal signals a significant shift in the legal landscape and may go into effect in 2024. Link to FTC Announcement.

• State-Level Restrictions: Many states have already implemented or are considering stricter laws on non-competes, making them harder to enforce. Some states, like California, have made non-competes in many industries essentially unenforceable.

• Increased Scrutiny: Courts are increasingly scrutinizing non-competes, often requiring employers to prove a legitimate business interest and that the restrictions are reasonable in scope and duration.

What This Means for Hairstylists

These legal developments are empowering hairstylists to take control of their careers and pursue their passions without fear of unfair restrictions. If you're feeling held back by a non-compete, here's what you should do:

1. Read Your Agreement Carefully: Understand the specific terms of your non-compete, including the geographic area, time frame, and types of activities restricted.

1. Consult an Attorney: An employment lawyer specializing in non-competes can help you assess the enforceability of your agreement and advise you on your options. Many offer free consultations.

1. Know Your Rights: Even if your non-compete is valid, you still have rights. You may be able to negotiate a severance agreement or explore other legal remedies.

1. Don't Be Afraid to Leave: If you're in a toxic work environment, don't let a non-compete hold you back. Your well-being and career aspirations are more important.

So, if you're wondering:

"Are salon non-competes enforceable?" or  "What to do if my salon has a non-compete?"

Remember:

• Non-competes are not always enforceable. Courts often find them unreasonable or too broad, especially in the personal services industry.

• You have the right to earn a living. Non-competes should not prevent you from pursuing your career goals.

• You are not alone. Many hairstylists are facing similar situations and finding ways to overcome them.

** Remember, this information is not a substitute for legal advice. Always consult with a qualified attorney to discuss your specific situation.