Baker McKenzie lawyers Amanda Cohen, Joseph Deng and Kimberly Franko, along with Daniel Graulich, Natalie Flores and Autumn Sharp, recently co-authored, "Considering Noncompete Strategies After Blocked FTC Ban," published by Law360. The article highlights the significance of the recent decision from a Texas federal court (Ryan LLC v. Federal Trade Commission) and how legislation – at both the state and federal level – may develop in the future. With noncompetes continuing to face legal challenges, the authors outline what employers need to consider as they look to protect their companies and their most valuable trade secrets.
The article explains that, although Ryan was a win for employers, resistance to noncompetes has been mounting on several fronts. Both the FTC and the DOJ retain the authority to investigate noncompete clauses on a case-by-case basis. In addition, a growing number of states have their own restrictions that employers must navigate.
Thus, despite the immediate relief from complying with FTC’s noncompete rule, the authors underscore that businesses will be well-served to inventory their noncompete agreements and review them to ensure their enforceability, given the patchwork of state legislation and escalating public hostility towards post-employment restrictions.
Read the full article here.
The article explains that, although Ryan was a win for employers, resistance to noncompetes has been mounting on several fronts. Both the FTC and the DOJ retain the authority to investigate noncompete clauses on a case-by-case basis. In addition, a growing number of states have their own restrictions that employers must navigate.
Thus, despite the immediate relief from complying with FTC’s noncompete rule, the authors underscore that businesses will be well-served to inventory their noncompete agreements and review them to ensure their enforceability, given the patchwork of state legislation and escalating public hostility towards post-employment restrictions.
Read the full article here.
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