Businesses and lawyers are beginning to assess how the Federal Trade Commission’s proposed ban of non-compete clauses in employment contracts could mean labor mobility, wages and how future compensation agreements are structured.
While a full or partial ban might expand the pool of potential recruits, it would also undermine a tool employers are starting to trust To retain talent and protect trade secrets and other proprietary information, lawyers say. They say more companies will likely turn to a patchwork of alternative mechanisms to prevent people from leaving and taking valuable information, including non-disclosure agreements and employment contracts that reward longevity.