Non-Compete Agreements prevent (or at least slow) employees from taking a client/customer list and/or trade secrets when they leave the company; however these Agreements could become part of the past. On July 9, 2021, President Biden signed an executive order asking the FTC (Federal Trade Commission) to “ban or limit” non-compete agreements. The Biden Administration says non-competes prohibit “economic mobility” by limiting people’s ability to change jobs, in turn keeping wages down and preventing employees from leaving for a better paying position elsewhere. Now that the executive order has been issued, employers are wondering, are non-compete Agreements with employees now illegal because of this order? The short answer is No – but employers should be on alert. How far the FTC will go remains to be seen. Stay tuned!
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