What Does President Biden’s Order on Noncompetes Mean for Employers?
July 14, 2021
President Biden recently signed an executive order that encourages the Federal Trade Commission to ban or limit noncompete agreements. The order is meant to promote competition and economic growth by making it easier for workers to change jobs, among other objectives. Employment lawyer Jon Nadler told SHRM that “Regardless of the eventual outcome of the FTC rulemaking process, the fact that the president is highlighting the issue is likely to spur additional restrictions through legislation at the state level, which have been increasing steadily in recent years.”
“To stay ahead of the curve, Nadler said, employers should reassess whether noncompete agreements are needed or whether legitimate concerns about protecting confidential information for certain employees can be addressed through other means, such as nonsolicitation agreements, which are more likely to survive scrutiny.”
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