In a recent article in the Financial Times news service P&C Specialist, employment partner Greg Demers is featured discussing what employees need to know about noncompete agreements amid heightened federal and state scrutiny.
The article explores the Federal Trade Commission’s (FTC’s) approach to overly restrictive noncompete agreements on a case-by-case basis, while more states pursue outright bans or limitations on their use.
Greg highlighted the importance of employees considering the laws of both the state where they live and where their employer is based when evaluating their noncompete obligations.
Greg also stressed that employees should understand the terms before signing a noncompete agreement, including an assessment of enforceability and potential litigation risk. He also noted that while some noncompetes preclude employees from working for a defined list of competitors, an agreement might not pass muster with the FTC if the worker is broadly barred from working in the entire industry.
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