(L-R)Nicholas Pappas and Krista Bolles, Dorsey & Whitney. Courtesy photos Developments in the Laws Governing Noncompete Agreements
"Employers should review their noncompete agreements and assess whether they are necessary to protect legitimate business interests, such as confidential information or goodwill," write Nicholas J. Pappas and Krista Bolles.
October 03, 2024 at 12:00 PM
9 minute read
Employment Law
Employers who wish to enter into noncompete agreements with their employees breathed a collective sigh of relief on Aug. 20, 2024, when a federal district court struck down the Federal Trade Commission's (FTC) new nationwide ban on noncompete agreements (the Noncompete Rule or Rule). Although for now the Federal Trade Commission Act does not prohibit the use of noncompete agreements, employers should be vigilant in seeking to comply with other federal laws and the laws in all 50 states which continue to govern the enforceability of noncompete agreements.
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