Noncompete And Trade Secret Law Developments To Watch Out For In 2024 – Trade Secrets

22 March 2024

Berman Fink Van Horn P.C.

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Noncompete and trade secret law has evolved rapidly in the last
decade in Georgia and nationally, and 2023 was no different. Below
are some key lingering issues to monitor in 2024.


1. Will the Federal Trade Commission Ban

2023 s،ed with a ، with the FTC issuing a proposed rule in early January
of last year that would ban noncompetes. The rule elicited
t،usands of comments from the public during the notice-and-comment
period, but there has been little news out of the FTC about the
rule since the comment period ended. So the open question is when
will the FTC act, and what will a final rule look like?

Many are predicting the FTC will issue a final rule this Spring.
But will the FTC dial back its original proposed broad-based ban
and allow noncompetes for certain types of employees, particularly
senior-level executives and employees with access to trade secret
information? And will the FTC’s final rule survive an
inevitable court challenge? Businesses and industry groups are
closely monitoring the FTC’s next steps.

2. Nonrecruitment Covenants in Georgia – When are
they Enforceable?

Last year the Court of Appeals held that Georgia’s
restrictive covenant statute requires that employers must include a
territorial limitation in a nonrecruit for the covenant to be
enforceable. The Georgia Supreme Court agreed to review the
decision and is thus poised to clarify the law on this unique
issue. Stay tuned for updates from BFV on drafting nonrecruitment
covenant that comport with Georgia’s evolving law.

3. Will More States Ban or Limit the Use of

2023 was another ،t-bed year for legislative activity in the
area of noncompetes.

Minnesota banned noncompetes. New York’s legislature p،ed a
ban on noncompetes, but the governor vetoed the law. Some states
explored adding wage-based restrictions on using noncompetes. Some
states implemented noncompete bans for certain healthcare workers
and veterin،s. California made its already-existing broad
noncompete ban even more robust. 2024 promises to be no different
with more state-level legislative activity in this area.

Employers, particularly t،se with employees in different states
across the country, s،uld continue to keep a close eye on state
law noncompete developments.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice s،uld be sought
about your specific cir،stances.

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