Proposed Federal Rule Limiting Non-Compete Agreements Remains In Limbo

Legal Precedents and Challenges in Restrictive Contracts

In an article published on September 1, 2023 in HR.com’s HR Legal and Compliance, Ron Schirtzer discusses the FTC’s proposed non-compete rule and how it would impact employers.

“While the ultimate fate of the proposed rule remains unknown, employers can take steps to protect their interests and reduce the potential impact of non-compete restrictions that may ultimately be imposed by the FTC or others,” says Schirtzer. “ These include the utilization of carefully tailored non-solicitation, confidentiality and non-disclosure provisions to prevent poaching of customers or disclosure of proprietary information by former employees; undertaking measures to clearly identify and safeguard trade secrets; and identifying potentially recoverable employee training and development expenses and providing for their recovery in existing employee contracts.”

To read the full article, click here.