New Biden Executive Order Places Increased Focus On Noncompete Agreements And Antitrust Enforcement

On July 9, 2021, as part of an executive order announced to promote competition and increase wages for workers, President Biden directed the Federal Trade Commission to consider two key areas affecting employers: first, "to ban or limit noncompete agreements"; and second, to revise the Antitrust Guidance for Human Resource Professionals of October 2016 (the "2016 Antitrust Guidance").

Notably, because the action asked only the FTC to "consider" such changes, it did not, in and of itself, change existing law. However, it reflects a growing trend to use antitrust law in the employment context that has been part of all three past administrations. Employers-and HR professionals-should be familiar with these laws to ensure that they do not accidentally trip the antitrust wire of both civil and criminal (and personal) liability.