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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.

  • Provided advice and counsel to companies in multiple industries, including financial services, manufacturing, defense and insurance, to address their current and expected approaches to protecting sensitive business information if the final rule goes into effect.
  • Counsel clients on potential constitutional challenge to the FTC’s authority to promulgate the final rule.
  • Audited clients’ current restrictive covenant policies and practices for compliance with the FTC’s final rule.

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