re: How does the FTC have the authority to do this - Non Compete ?

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That would be trade secrets laws. In LA a client list CAN BE a trade secret, FYI.

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Cornell Law defines non-competes to include trade secrets and company confidential information.

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A noncompetition agreement, also called a noncompete or a covenant not to compete, is an agreement where one party promises not to engage in conduct that would increase competition for the other party for a specific period of time. This conduct can include divulging trade secrets or privileged information obtained while working under that employer or entering employment with the employer’s direct business competitor.

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If I hire a new employee, give them access to privileged company information, and then they leave to work for a competitor, I don't see how they could possibly do so without using the knowledge they gained from employment in my company to help my competitor potentially taking away my business.