Navigating the rising wave against non-competes

25-07-2023

David Pardue, Patti Bartis and Sarah Hutchins

Navigating the rising wave against non-competes

William Potter / Shutterstock.com

Amid criticism against restrictive covenants such as non-competes, what can life sciences firms do to keep their trade secrets safe and defend against unfair competition, ask David Pardue, Patti Bartis, and Sarah Hutchins of Parker Poe.

Non-competes and other restrictive covenants faced a tidal wave of criticism this year, from the White House to state legislatures. The Federal Trade Commission (FTC) is not waiting to finalise or debate its proposed non-compete ban before stepping up enforcement against businesses.

The FTC has already filed at least four enforcement actions this year “against companies that use harmful non-competes”, as the agency put it in one press release. The FTC is targeting what it considers overly restrictive agreements.

The National Labor Relations Board (NLRB) is also riding the wave, as are state legislatures. Non-competes were even called out in this year’s State of the Union speech, the traditional testing ground for executive branch policy.


Parker Poe, non-competes, life sciences, trade secrets, unfair competition, FTC, NLRB, Supreme Court

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