Nine Strategies for Protecting Your Business against Unfair Competition after FTC’s Ban on Non-Competition Covenants
…other nondiscretionary compensation” and excludes benefits. After the rule comes into force (120 days after publication in the Federal Register), an employer cannot impose a new non-compete covenant on any new incoming senior manager. This benefits new hires over incumbents. A second exception validates non-competes for employees, as selling owners, who engage in “a bona fide sale of a business entity, of the person’s ownership interest in a busin…