White House Executive Order Seeks To Limit Non-Competes

On July 9, 2021, the White House issued an executive order ("EO") with the stated objective of countering anti-competitive forces throughout the economy.  One specific directive is the limitation of non-compete agreements, which include not only restrictive covenants, but also "other clauses or agreements that may unfairly limit worker mobility."  Potentially, this could include customer and employee non-solicitation provisions, which some courts construe in the same manner as employee restrictive covenants.  Such agreements today are governed by state laws, which vary significantly state-by-state.

In an accompanying fact sheet, the White House noted that competition in labor markets empowers workers to demand higher wages and greater dignity and respect in the workplace.  It further stated that roughly half of private-sector businesses require at least some employees to enter non-compete agreements, affecting some 36 to 60 million workers.  President Biden