The Rise and Fall of Non-Compete Agreements

After a decades-long rise, the fall of the Holy Roman Empire that is non-competition agreement is soon to be upon us.

Today, President Biden will be issuing an Executive Order to the Federal Trade Commission to adopt rules that curtail the use of non-compete agreements in order to promote competition in labor markets. A continuation of efforts he made when service as Vice-President, the Commander in Chief said “we have the most dynamic, productive workers in the world, but they can’t reach their true potential without freedom to negotiate for a higher wage with a new company, or to find another job after they’ve been laid off.”

This a reversal of policies that were in place during the previous administration which tended to favor laissez-faire regulations.

What does this mean for employers? Right now, it’s tough to tell. But it bears monitoring the work of the FTC in the coming months to get a better feel for how non-compete agreements should be used.

For more, click here.

For a Fact Sheet from The White House, click here.