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.