Feeling Competitive: The Reasonableness of Forfeiture-for-Competition Provisions

Feeling Competitive: The Reasonableness of Forfeiture-for-Competition Provisions

In 2024, employers rushed to track the twists and turns of the Federal Trade Commission’s (FTC) noncompete ban, which attempted to limit the enforceability of agreements that restrict employees from working for a competitor following employment. Though the FTC’s ban has since fizzled out, the commotion around noncompetes also led to conversations about “forfeiture-for-competition” clauses — a similar, but distinct type of agreement. Unlike a non…