Whether Wall Street garden leaves survive non-compete ban is an 'open question'

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Garden Leave News

Federal Trade Commission,Alston & Bird,Private Equity Firms

Some 'garden leave' agreements that Wall Street uses to protect secrets are expected to survive the FTC's new non-compete ban, but some probably won't.

" agreements that Wall Street firms use to protect their secrets are expected to survive a new non-compete ban from the Federal Trade Commission .The FTC’s ban leaves "an open question" as to whether all garden leave provisions would be enforceable, said Chris Marquardt , head of Alston & Bird's labor and employment group.

Some Wall Street firms have been reducing pay during garden leaves, and those agreements could be invalidated, according to Reed Smith attorneys Mark Goldstein and Veronica Miclot. That’s because banks are exempt from the FTC’s new rule. So are certain nonprofits such as healthcare providers, as well as stockyards.

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Federal Trade Commission Alston & Bird Private Equity Firms Chris Marquardt Non Compete Agreements Leaves

 

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