HR Alert: Biden’s Executive Order Targets Noncompetes

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Most people are aware that noncompetes prevent employees from working for competitors in specified geographic areas for specified amounts of time. But noncompetes as we know them may be changing. On July 9, 2021, President Biden signed an executive order aimed at limiting their use.

President Biden’s executive order doesn’t contain many details, so it’s difficult to predict its impact. But we do know that the order is designed to promote competition and economic growth by making it easier for employees to change jobs.

It’s pretty clear that the FTC is going to start looking at the laws surrounding noncompetes. Some changes may be less controversial, like requiring employers to provide noncompetes before an employee’s start date. Other changes may be more controversial, but an outright ban on noncompetes seems pretty unlikely.

One thing is clear: employers should review the ways they protect confidential information. Employers that want to get ahead of the curve should consider identifying what their agreements restrict and which types of employees are covered. Broader agreements may need revisions in the future.

It’s important to note that nothing is official yet. Here at The Coppola Firm, we’ll be keeping a close eye on any developments as they may come. In the meantime, feel free to reach out to our team of experienced attorneys for any questions about noncompetes or employment law.

Lisa Coppola

Written by Lisa Coppola

Founder of The Coppola Firm

Lisa A. Coppola, Esq. understands the challenges her clients face, whether they’re starting a new business, taking their existing operations in a new direction, or facing a claim or threat.

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