How can employers prepare and respond if the new non-compete provision ban goes into effect?
On April 23, 2024, the Federal Trade Commission (FTC) issued a Final Rule banning the use of non-compete provisions in employment contracts. While subject to legal challenges, the federal standards, combined with diverse state rules on such provisions (ranging from complete bans to general permissiveness) raises new considerations for employers. Employers must tread carefully in understanding how to protect confidential information and trade secrets from walking out the door with departing employees. In this episode, Nicholas Pappas discusses the substance, status, and exceptions to the FTC rule and how employers, given these issues, must navigate the evolving legal landscape.
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