No More Non-Competes?

The Federal Trade Commission ("FTC" or "Commission") recently issued a final rule banning non-competes throughout the United States.¹ Many employers and stakeholders in U.S. businesses may initially balk at this news. Training new employees often involves disclosing information containing trade secrets to these employees – valuable information that could be utilized to start a competing business or improve a competitor's operation. Further, when purchasing a business, including non-competes is paramount to prevent the seller from starting a venture competing with the business that was just sold. This article discusses the ban, the effect on existing non-competes and alternative means of protection available to employers and business owners.