What’s Next for the FTC’s Ban on Noncompetes?
The U.S. Federal Trade Commission’s new rule, set to take effect in September, prohibits most employers from using noncompete clauses to restrict workers’ mobility. However, the ban faces legal opposition and uncertainty. If it takes effect, businesses will need to adopt other strategies to safeguard their confidential information and intellectual property, such as confidentiality agreements, nonsolicitation provisions, and trade-secret laws.