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Next Steps: Navigating the FTC’s Noncompete Ban for Businesses


The recent ruling by the Federal Trade Commission (FTC) to ban noncompete agreements marks a significant shift in the business landscape. As companies prepare to adapt to this transformative regulatory change, it’s crucial to understand the implications and take proactive steps to ensure compliance while maximizing opportunities for growth and innovation. 

Here’s how you can prepare:

  1. Review Existing Noncompete Agreements: The first step for businesses is to conduct a thorough review of existing noncompete agreements with employees. Identify any agreements that may be affected by the new ruling and assess their enforceability post-implementation. For agreements with senior executives, understand the provisions that allow them to remain in force and ensure compliance with the revised regulations.
  2. Review and Revise Contracts: Beyond noncompete agreements, businesses should review all employment contracts, including non-solicitation, non-disclosure, and confidentiality agreements, to ensure consistency with the new regulatory framework. Assess the enforceability of existing contractual provisions in light of the noncompete ban and make necessary revisions to align with legal requirements and best practices.
  3. Update HR Policies and Practices: Businesses should update their human resources policies and practices to reflect the changes brought about by the noncompete ban. Train HR personnel and managers on the new regulations to ensure consistent and compliant implementation across the organization. Consider revising hiring practices to align with the prohibition on noncompetes and explore alternative methods for protecting intellectual property and confidential information.
  4. Protect Intellectual Property: While noncompete agreements may no longer be an option for safeguarding intellectual property, businesses must remain vigilant in protecting their proprietary information and trade secrets. Review and strengthen confidentiality agreements, nondisclosure agreements, and intellectual property policies to mitigate the risk of misappropriation or unauthorized disclosure. Invest in robust cybersecurity measures to safeguard digital assets and sensitive information.
  5. Bolster Confidentiality Measures: In light of the noncompete ban, businesses must strengthen their confidentiality measures to safeguard sensitive information. Review and update confidentiality policies and agreements to clearly define the types of information considered confidential and the obligations of employees to protect such information. Implement access controls and encryption protocols for digital assets and proprietary data to prevent unauthorized access or disclosure. Regularly assess and update security protocols to address emerging threats and vulnerabilities. Educate employees on the importance of confidentiality and provide training on best practices for handling sensitive information.

The FTC’s ban on noncompete agreements brings both challenges and opportunities for businesses. By actively reviewing current agreements, revising HR policies, reinforcing confidentiality measures, and safeguarding intellectual property, businesses can effectively navigate the regulatory changes.


Tricia Meyer ProfileTricia Meyer is a serial entrepreneur, business lawyer and mom of 6! Tricia is the Founder + Managing Attorney at business law firm, Meyer Law and Co-Founder at The Clever Baby. At Meyer Law, Tricia has helped thousands of companies from startups on Shark Tank to growing companies on the Inc.500 list to some of the largest, well-known companies in the world! The Clever Baby recently launched its first product Jet – a patented, innovative teether and dispenser all-in-one, and is committed to developing clever products for parents and creating magical moments for babies and kids. Tricia is passionate about entrepreneurship and has mentored thousands of companies at incubators and accelerators across the United States at 1871, TechStars, WeWork Labs, and more!