Big changes may be on the way for the life sciences industry, especially in the pharma segment, resulting from the Federal Trade Commission’s (FTC’s) proposed rule to ban employers from entering into and using noncompete provisions in employment contracts.
As life sciences is an industry that is dependent on highly educated and skilled personnel who require substantial investments in training and professional development, the FTC proposal, if adopted, will disrupt and change significantly the way the industry recruits, retains, and invests in scientists and other experts. Questions and discussions of new practices for protecting trade secret and other intellectual property—the core asset of most life sciences companies—held by employees will need to be explored.
We explored the possible implications of the FTC proposal and how it will affect hiring and retention practices in our FTC Proposed Noncompete Ban Forum.