Majed Dakak, partner with Kesselman Brantly Stockinger, was recently quoted in a Law360 article, “Noncompete Ban Tees Up 1st Test of FTC’s Rule Power.” The article discusses the FTC’s proposed rule that would federally ban noncompete agreements from employment contracts, and many are speculating this could draw legal challenges.
Dakak told Law360 he predicts the FTC can prevail over any legal challenges. The regulatory authority should be upheld “if read fairly,” Dakak said. “The FTC Act is very broad in its breadth.”
One concern regarding a ban on noncompete agreements is the risk to protecting trade secrets for higher level executives. However, Dakak noted “There’s already laws on the books,” likening noncompetes to “starting a forest fire because you’ve got one tree you want to chop down.”
You can read the full article in Law360 here: (subscription required)
https://www.law360.com/ articles/ 1563061/ noncompete-ban -tees-up -1st-test -of-ftc-s -rule-powers