Insights & Resources

FTC rule banning noncompete contracts means changes for recruiters

'Welcome change': Pittsburgh-based corporate recruiters talk noncompete ban
With the Federal Trade Commission's new rule banning noncompete agreements months away from implementation, the playing field is shifting for corporate recruiters. The questions are how and when.

Lori Carpenter, president of Carpenter Legal Search Inc., which works with companies as well as law firms, said corporations are concerned about sensitive business information, intellectual property and trade secrets.

"If there are no noncompetes, a person can leave at any time after acquiring company knowledge and share that with a new employer immediately," she said. "Additionally, without noncompetes, corporations are also concerned about retention, believing that their removal will open the door for attrition."

The rule may afford candidates greater flexibility to change employers and broaden the pool of candidates for a position, Carpenter said.

"As a legal search firm, not all of our clients ask attorneys being hired to sign noncompete agreements," she added.

Read more: 'Welcome change': Pittsburgh-based corporate recruiters talk noncompete ban - by Patty Tascarella, Pittsburgh Business Times

Keep In Touch

Would you like to be kept apprised of the latest CLS news and opportunities?
Subscribe