Noncompete ban on carry clawback
How does the FTC noncompete ban affect clawback clauses affecting carry? i.e. many PE firm clawback some or all of the vested carry if you go to work for a competitor.
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I don’t believe so as the FTC reg doesn’t impact people making over ~$150k. Hopefully the non competes too long and you just take a long vacation.
Not true. To be exempt you need to make $150K+ AND be an officer-type employee with decision-making power.
Should still apply. They worked hard to close the loopholes and limit it to truly senior execs only. I can't see a court saying some ASO or VP meets this definition.
Under §910.2(a)(2), “senior executives” are workers who are in a “policy-making position” and earned at least $151,164 annually. A “policy-making position” means the CEO or any other officer of a business entity or person who has “policy-making authority.” “Policy-making authority” means “final authority to make policy decisions that control significant aspects of a business entity or common enterprise,” but it does not mean a person whose role is limited to advising or influencing such decisions.
Ask your employment legal contacts
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