Are Non-Compete Clauses Legal Under the Biden Administration?

Are Non-Compete Clauses Legal Under the Biden Administration?

NON-COMPETE PROVISION UPDATE

As a result of an Executive Order released this year from the Biden Administration, The Federal Trade Commission (FTC) has been tasked with creating new rules curtailing the use of “clauses or agreements that may unfairly limit worker mobility.” Although non-compete provisions seem to be the focus, it is likely their review will include non-solicitation provisions, no-hire provisions, and non-servicing provisions used by employers. The rulemaking process generally moves slowly and requires several steps including a notice of proposed rulemaking, an opportunity for comment, and FTC’s responses prior to finalizing a rule. Peyton Law will be closely following this evolution, and we look forward to working with you to ensure your employment agreements are in compliance when final rules are published.