Employment

Herrick partner, John H. Chun, was quoted in Legal Dive discussing the Federal Trade Commission's April 23, 2024, 3-2 vote in favor of a nationwide ban of noncompetes and similar agreements for employers.

The article highlighted that other types of agreements, like nondisclosure and nonsolicitation agreements, will not be allowed if they are found to be functioning as noncompete agreements. Determining if another form of agreement is functioning as a noncompete creates a legal gray area that will put the onus on in-house counsel to justify why their company’s use of these alternative agreements doesn’t amount to de facto noncompetes, John noted. There’s “little guidance as to when an NDA will cross that line,” he explained. 

Read the full article in Legal Dive here.