In the Financial Times, White & Case partner Kathryn Mims discusses the impact on financial companies and their employees as the US Federal Trade Commission's ban on non-compete agreements takes effect.
The ban, which has left Wall Street businesses looking to restructure contracts and find new ways to tie down the personnel that their business models rely on, was passed by FTC commissioners with a 3 - 2 majority on Tuesday. The ban faces robust legal challenges, but if it becomes effective, the action will invalidate existing contracts for most employees, and will apply to all new contracts beginning in August, writes the Financial Times.
Mims notes, "The breadth of the rule, if it becomes effective, will impact a lot of workers at a lot of levels all across Wall Street."
"Knowing how a financial firm operates behind closed doors, knowing the culture," she says, are features firms try to keep well protected through non-competes.
See the full Financial Times article here.
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