Since the Federal Trade Commission recently announced a proposal to ban all noncompete agreements, clients have been asking, “What about our trade secrets?”

It’s a logical question, considering that noncompetes are one of the primary ways businesses protect these secrets.

Employers don’t want their valuable information walking out the door with a departing employee. To protect against this risk, most noncompete agreements contain restrictive covenants. These provisions prohibit an employee from soliciting certain clients of the employer or from divulging and using the employer’s confidential information and trade secrets at their new job.

In addition to these contractual protections, employers rely on federal and state laws that prohibit theft of trade secrets. States are increasingly viewing noncompetes with skepticism, with a few—like California, Oklahoma, and North Dakota—prohibiting their enforcement.

Therefore, businesses should imagine their trade secret protection practices in a world without noncompetes. Fortunately, there are practical and effective steps businesses can take to protect their trade secrets without using such agreements.

So what can business leaders do if noncompetes are off the table?

With the uproar over the proposed rule, along with questions about the Federal...

Read Full Story: https://news.google.com/__i/rss/rd/articles/CBMiZ2h0dHBzOi8vbmV3cy5ibG9vbWJlc...