Stock illustration showing a tap through which data flows. Credit: the_lightwriter/Adobe Stock

Non-compete agreements were never a perfect way for companies to limit data loss, according to legal observers, who say an outright ban would force businesses to adopt more proactive measures.

“It’s really a blunt instrument, and it’s inherently retrospective,” David Huberman said of non-competes. Huberman is general counsel of Minneapolis-based Code42, a cybersecurity software company that specializes managing insider risk. “If a company is looking to enforce a contract, it’s after the fact. The damage has already been suffered,” he said.

The information-security industry is among many business sectors assessing the potential impact of the Federal Trade Commission’s proposed non-compete ban, which has many supporters and detractors.

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