Cos. Shouldn't Alter Noncompete, Severance Agreements Yet

In two highly publicized administrative actions, the Federal Trade Commission and the National Labor Relations Board have sought to end, or at least significantly curtail, the use of noncompete agreements, and standard non disparagement and confidentiality provisions in severance agreements, respectively.

Both actions will be challenged, thus creating a limbo period for employers as the court proceedings unwind.

Guidance for how to act during this interim period has varied widely, from immediately overhauling all existing agreements to doing nothing.

In this article, we join the fray and recommend a wait-and-see approach for noncompetes, and a measured, case-by-case analysis for severance agreements.