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Business Implications of FTC's Noncompete Ban
ARTICLE | July 10, 2024
Authored by Vasquez + Company
Noncompete agreements, vital in protecting business interests post-employment or during mergers, face uncertainty with a new FTC rule set to ban most noncompetes for employees and contractors from September 2024. This article explores the types of agreements impacted, considerations in valuing noncompetes, and the enforceability challenges posed by the FTC's decision.
Key Points
- Types of Agreements: Noncompetes safeguard against competition post-employment or after business transactions, aiming to prevent disclosure of trade secrets and client poaching.
- Enforceability Issues: Legal enforceability varies; courts assess reasonableness in terms of scope and duration, with some jurisdictions restricting noncompetes.
For more information, read the full article here.
Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
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