White Paper

Use of Non-Compete Agreements - Too Much of a Good Thing

 
In case you missed the trend, several recent actions by the Obama administration have been aimed at enhancing employee rights. This pattern continued last week, when the White House issued a “Call to Action” and a report on Non-Compete Reform: A Policymaker’s Guide to State Policies, expressing concern about overuse of non-compete agreements. Unlike recent reforms that the administration has accomplished through Executive Orders (such as mandating paid sick leave for government contractors), there was no attempt to impose any immediate change in the law. For the most part, the use of non-competes has been controlled by state law (and so changes would generally require state action, unless antitrust concerns could be established under federal law). Accordingly, the report seems intended to help facilitate a dialogue about concerns and possible reform and is not a clear signal of impending change.

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Dabney Ware is of counsel and a litigation lawyer with Foley & Lardner LLP where she focuses her practice in the area of labor and employment law. Ms. Ware has extensive experience both in employment-related litigation and in counseling clients on all aspects of compliance with the myriad of federal, state, and local laws. She is a member of the firm's Labor & Employment Practice and Food & Beverage Industry Team.