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ARTICLE · 20 AUGUST 2021

Takeaways From President Biden's Executive Order On Non-Competes

L&E Global
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Federal regulation of non-compete agreements has been discussed for years.

United StatesEmployment and HR
John Sander (Jackson Lewis)
John Sander (Jackson Lewis)
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In the latest step toward federal regulation of non-compete agreements, President Joe Biden has issued a wide-ranging Executive Order that, among many other competition-focused objectives, encourages the Federal Trade Commission (FTC) to "curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility."

Past Efforts

Federal regulation of non-compete agreements has been discussed for years. In March 2016, the U.S. Treasury Department issued a report, "Non-Compete Contracts: Economic Effects and Policy Implications," based mostly on non-public studies, asserting pervasive misuse of non-competition agreements.

In October 2016, President Barack Obama issued a "State Call to Action on Non-Compete Agreements" to "address wage collusion, unnecessary non-compete agreements, and other anticompetitive practices."

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