Antitrust Alert: Authorities Increasing Scrutiny Of Employee Noncompete Agreements

U.S. authorities are increasingly scrutinizing noncompete provisions made part of employment agreements, with close focus on provisions restricting junior-level and low-wage employees. Common in technology firms, which frequently deal with proprietary information, noncompetes are becoming more common in other industries and increasingly appear in agreements with lower-level employees. 

Noncompetes are restrictive covenants that require employees not to work for an employer's competitors after resigning or being terminated, often for a specific term, typically six months to two years, and often within a certain geography, typically tied to where the employer operates, such as within some number of miles from the employer's site or where its customers are located.