If the Federal Trade Commission’s (FTC) final rule on noncompetes (the final rule) goes into effect – a big IF because it has already been challenged in at least two federal district courts – nearly every employer in the country would be left without the ability to enforce currently valid or enter into new noncompete agreements with their employees. This restriction applies regardless of the employees’ access to trade secrets and confidential information or level of compensation, which is a tectonic shift in the way many businesses operate and protect their most confidential materials.
Our multidisciplinary team of attorneys, covering labor and employment, business, litigation, digital assets and data management, and intellectual property, are well prepared to help clients navigate the impact this will have on their businesses. From addressing questions about which employees are covered by the senior executive exception to the appropriate use of nonsolicitation, garden leave, forfeiture for competition, or liquidated damages and restrictions on the sale of a business, our team has been advising companies on how to best manage these potential changes.
