President Biden just announced that he plans to issue an executive order directing the Federal Trade Commission to adopt rules restricting the use of noncompete clauses in certain employment agreements. Employers and employees often enter into noncompete agreements restricting the employee’s ability to work in the same industry or solicit the employer’s customers or employees after they change jobs. Employers rely on these clauses to protect the competitive intelligence and customer information that employees gain through their work. Employees often object to these agreements after leaving because, in some cases, the agreements are drafted so broadly that they prohibit the employee from taking a new job even when it would not create any real unfair competition. President Biden’s executive order may soon substantially change the playing field for noncompete cases, which are one of our core areas of practice. We will keep you updated as new rules are rolled out and remain ready to assist with any noncompete-related issues.
