FTC Ban Hurts Protection of Confidential Information

Head of Olshan’s Employment Practice partner Michael Passarella authored an article in New York Law Journal (subscription required) entitled “FTC Ban Hurts Protection of Confidential Information.” The article explores the non-compete ban proposed by the FTC, potential alternatives, and the legal challenges employers would face pertaining to confidentiality and trade secrets if the ban was adopted. When discussing the implications this ban would have on employers, Mike writes, “Assuming that a rule is adopted in some form, employers will look more closely at its current policies and procedures for protecting trade secrets and confidential information.” He adds, “If employers can no longer rely upon non-competes to prevent employees from immediately moving to a competitor, one can expect trade secret litigation to significantly increase, as it already has since the passage of the Defend Trade Secrets Act in 2016 and the disfavoring of non-competes in many states.”