Partners Michael Jones and Lesli Ligorner spoke to China Business Law Journal about the need for Chinese companies operating in the United States to comply with the Federal Trade Commission’s ban on noncompete clauses, set to take effect on September 4, 2024.
“Employers can continue to safeguard their interests through appropriately tailored confidentiality agreements and non-solicitation agreements and, in some cases, through properly drafted garden leave provisions,” said Michael.
“The ban does not apply to non-competes if they restrict work outside the United States,” said Lesli, adding that “as a result, a Chinese company will still be able to prohibit its US-based employees from competing against it overseas.”