FTC Seeks to Restrict Non-Compete Agreements
Jordan Wahbeh
VC, Syndicate VC - Talks about #Investor, #VentureCaptial, #Startups, #Operations, #BizDevelopment, #syndicates , #Doinggood
Final Rule April 23, 2024
For more detailed analysis or legal advice, read more- t.ly/glsqI
Two things,
a. Sort out where your company stands in current agreement
b. More important, how do you run your business without Non-competes!
While California has most barred them, will this affect how businesses are managed! Definitely!
source - t.ly/glsqI
Credit to Rachel Edwards and Paul Johnson . Always, shout out to Roger Rappoport our SV Startup lawyer and friend.
Since the famous case, Motorola versus Fairchild, the legal system has rejected methods that restrict the freedom of people to seek the best opportunities to apply their skills and knowledge. The only legitimate tool for a company to protect IP is to identify and properly protect trade secrets. Meeting minutes and trade secret logs that are updated as information becomes commonly known are critical in seeking legal relief, where confidentiality is violated. When management works to maintain defensible competitive advantages and to diversify into different markets, providing consistent revenue, valued employees will generally want to continue to play on a winning team. The brutal cycles in semiconductor, where there is little on no job security should result in the management diversifying into alternative cleanroom technologies, such a pharmaceutical and battery manufacturing. Maintenance agreements, consumables, and spare parts are important streams of revenue for companies making capital equipment.