President Biden’s July 9th Executive Order on Promoting Competition in the American Economy includes over 70 initiatives on the subject, with implications for a wide range of government agencies. For example, the Order contemplates topics from antitrust enforcement and mergers to healthcare and prescription drugs, and even right-to-repair (e.g., your smartphone). Notably, the Order encourages the Federal Trade Commission to ban or limit non-compete agreements.
Business Takeaway: Businesses should anticipate that changes to non-compete agreements are on the horizon, though it is not yet clear what they may entail. Experts’ expectations range from procedural changes (e.g., must be presented to the employee on or prior to the employee’s start date) to targeting certain aspects of the workforce (e.g., low wage workers). For now, revisit your non-compete agreements and procedures with these question in mind: what precisely are you trying to accomplish with your agreement, and which employees are required to sign? Contact Mark at firstname.lastname@example.org if you have questions about non-compete agreements, and stay tuned for further developments.