Protecting Valuable Talent and Trade Secrets in the Aftermath of the Non-Compete Ruling

By Matt Mangels – VP of Information Security & Compliance 

The Federal Trade Commission (FTC) recently made waves by announcing a final rule banning non-compete agreements for employees not in an executive or “policymaking” position. This ruling allows workers to change jobs, start a business or bring a product to market without legal repercussions from an NCA.  

The ruling sparked many questions, especially from executives and senior business leaders with concerns on how it will impact their business. Many expect the new ban will make it challenging to prevent employees from leaving and sharing trade secrets with competitors. However, with a security-focused strategy and customized approach to staffing, leaders can better position their businesses to face these concerns head-on. 

Establish a Security-Focused Culture

A serious concern facing employers with the non-compete agreement ban are employees leaving for a competitor with sensitive data and intellectual property (IP) in their back pocket. In the post-pandemic era, many businesses operate within cloud environments that have multiple access points, and if not properly monitored, leave sensitive data vulnerable to exploitation. To mitigate the risk of employees from performing data breaches, it’s important for businesses to establish a security-focused culture.  

This mindset needs to be present from day one and it starts with a collaborative effort from the IT and HR teams. Together, they build the foundation for security to thrive with comprehensive automation processes for secure onboarding and offboarding by defining clear protocols that protect valuable endpoints and cloud applications.  

Incorporating security training initiatives throughout employment also reinforces the value of security. It instills proper data handling practices, educates employees on cyberattacks and brings awareness to insider risks among employees. Implementing a combination of data classification and data-loss prevention (DLP) mitigates the danger of unauthorized access and tracks irregular activity.  

By adding an additional layer of preventative controls and detective mechanisms, businesses can maintain a positive and productive work environment for their teams while feeling confident that their trade secrets will stay protected from competitors. 

Filling Positions of Lost Talent

The ban on non-compete agreements is also expected to increase employee turnover with higher salaries and better work-life balance as the driving force. An article by Forbes predicts the “average earnings among all workers could increase by 3.2% to 14.2%” in light of the ruling. If businesses don’t have the budget to readjust salaries or struggle with team morale, they run the risk of losing indispensable employees to competitors. This potential upheaval in team dynamics poses a significant challenge for leaders without the resources to find and hire a replacement.  

The silver lining surrounding this predicament is the advantage staffing partners bring to this arena. A staffing agency has the technology and time to vet resumes, screen candidates and match them to their client’s business goals. With the NCA ban, staffing partners now have access to an even larger pool of candidates, making it easier to discover qualified people for specific industry jobs or quickly fill contract, contract-to-hire, and full-time positions.  

Secure Your Talent and Data

Approaches to retaining talent and protecting important data vary from industry to industry, requiring tailored strategies for staffing and security solutions. At Moonshot Solutions, we are uniquely positioned to answer your questions about both, finding a holistic response that best aligns with your business goals.  

Our team has extensive experience classifying data and implementing controls to protect your data assets. While also possessing the credentials to find the talent you need to drive innovation and stay ahead of the competition. We do all this while ensuring the confidentiality and integrity of your sensitive information.  

Let’s navigate this regulatory shift together while securing top talent and your data! Contact our team today to learn more:  


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