Today President Biden signed an Executive Order encouraging the U.S. Federal Trade Commission (FTC) to ban or limit noncompetition or non-compete agreements nationwide as part of his broader order to promote competition in the American economy. Non-compete agreements currently are addressed on a state-by-state basis, with several states such as California banning the agreements and other states, such as Washington, limiting such agreements. Federal legislation about non-compete agreements would be a significant change from today’s employment and non-compete landscape. In addition to addressing noncompete agreements, the Executive Order also encourages the FTC to ban unnecessary occupation licensing restrictions and to strengthen antitrust guidance to prevent employers from collaborating to suppress wages or reduce benefits through wage and benefit information sharing. For more information, view Fact Sheet: Executive Order on Promoting Competition in the American Economy.
For background, you may view our previous posts about Washington non-compete agreements: Non-Compete Agreement Earnings Threshold Increases January 1, 2021 and Governor Inslee Signs New Law Restricting Noncompetition Agreements.
If you have any questions about this Executive Order or noncompetition agreements, please reach out to the Employment Rights, Benefits & Labor Group at Ryan Swanson.
