Course
The Federal Trade Commission has issued a proposed rule that will
ban most noncompete agreements going forward. Employees who own at least
25% of a firm that is being acquired would be exempt, and virtually all
existing non-compete agreements would be rescinded immediately. If the rule
goes into effect as proposed it could significantly impact business decisions
related to M&A as well as firm owners and employees currently working under
such agreements. ACEC is offering a special webinar to help you
understand what the proposed rule means to your firm and steps you can take to
protect proprietary information.
Noncompete agreements are often included in ownership or
shareholder agreements to prevent someone from taking employees, proprietary
information, and clients with them if they leave the firm. They are also
routinely used in acquisitions of other firms. The FTC argues that such
agreements suppress wages and prevent entrepreneurs from starting new
businesses. Several states have already banned or restricted the use of
noncompete agreements. If the FTC publishes a final rule, it is expected
to be swiftly challenged in court.
After attending this session, participants will:
- Understand what is in the FTC proposed rule
- Learn about other restrictive covenants, such as
non-solicit and non-disclosure agreements, that the FTC might consider the
equivalent of a non-compete - Understand the rule making process and why a final rule
is vulnerable to legal challenge - Discuss approaches to protecting proprietary
information and clients if the ban on noncompete agreements is enacted and
upheld in court
Presenters: Andrew Kilberg and Jason Schwartz, Gibson Dunn