Non-compete agreements are very common in M&A deals. A recent Federal Trade Commission rule sought to change that, aiming to prohibit employers from attempting to enter into non-competes with all workers. That rule, however, didn’t take effect, and might never. Still, given the state-level trends governing the use of non-competes, there's plenty for businesses and dealmakers to navigate.
Royer Cooper Cohen Braunfeld partners Matt Brinker and Alex Nassar break down the trends and offer advice on how M&A professionals can prepare and structure deals in the current environment. Here’s an excerpt:
“It can't be emphasized enough that even if the FTC rule dies on the vine, which many commentators are indicating that it may, the trend at the state level is still to continue to tailor and restrict the enforceability in non-competes unless very specific elements are met, depending on the state law.” - Alex Nassar, Partner, Chair of the Employment Group, Royer Cooper Cohen Braunfeld LLC
You can catch the full conversation on the podcast.
