Interview: Will a ban on noncompete agreements affect US rental consolidation?

The US Federal Trade Commission’s recent ban of noncompete agreements grabbed the attention of rental industry observers last week, raising the question of its effect on both employees and business owners selling their business.

Noncompetes prohibit workers from joining competing companies or starting competitive businesses for a prescribed period of time. Equipment rental companies regularly sign noncompete agreements when selling their business to consolidators, often going on to open new companies when the legal contracts expire.