FTC Rule Banning Most Noncompetes Leaves Lots of Questions

Business litigation partners Harmony Mappes, Ryan Hurley and Matthew Burkhart coauthored an article in The Indiana Lawyer on the recent FTC ruling to ban noncompetes for the majority of workers.

In the article, the authors discuss an overview of the rule, which states “employers are required to provide notice to workers with existing noncompete agreements that those agreements are no longer enforceable.” They also share when the rule might take effect, which is dependent on the multiple lawsuits filed challenging the rule.

Under the rule, the coauthors note there is much confusion as to what the notice must say, how this development will impact ongoing litigation premised on existing agreements and if senior executives will continue to be exempt if the company updates the employment agreement to change only other terms. They encourage businesses to protect valuable information using “narrowly tailored non-disclosure agreements and trade secret protection plans.”

The full article is available to The Indiana Lawyer subscribers.