April 19, 2021

Volume XI, Number 109

Advertisement

April 16, 2021

Subscribe to Latest Legal News and Analysis

Another Bill in Congress Seeks to Limit Non-Competes – Will This One Go Anywhere?

On February 25, 2021, the Workforce Mobility Act, a bipartisan bill to limit the use of non-compete agreements, was introduced in the U.S. Senate by Senators Chris Murphy (D-Conn.), Todd Young (R-Ind.), Kevin Cramer (R-N.D.) and Tim Kaine (D-Va.), and in the U.S. House of Representatives by Scott Peters (D-Cal.).

This year’s Workforce Mobility Act is the latest of several attempts in recent years at the federal level to restrict non-compete agreements through legislation.  Despite bipartisan support at times, none has passed either the Senate or the House.  Will there be a different result this time around?

There may be some reason to think so.  The Biden administration appears to be in favor of banning one or more forms of non-competition agreements on a national level.  In December 2020, then President-elect Biden released a Plan for Strengthening Worker Organizing, Collective Bargaining, and Unions, which stated “Biden will work with Congress to eliminate all non-compete agreements, except the very few that are absolutely necessary to protect a narrowly defined category of trade secrets, and outright ban all no-poaching agreements.”

Enactment of the Workforce Mobility Act in 2021, however, still seems like a long shot.  If the bill progresses in Congress, it will be subject to heavy lobbying from both sides of the issue.  For employers, the bill’s restrictions would have a major impact on businesses that seek to protect confidential information that may not rise to the level of trade secrets, including business strategy and client-related information.  If enacted, the bill also threatens to upend decades’ worth of legal precedent by introducing a federal statute that will be interpreted primarily in federal courts, in an area that has been governed by practice and precedent premised on a patchwork of state common law and some state statutes.  Stay tuned.

Advertisement
©2021 Epstein Becker & Green, P.C. All rights reserved.National Law Review, Volume XI, Number 60
Advertisement
Advertisement

TRENDING LEGAL ANALYSIS

Advertisement
Advertisement

About this Author

David J. Clark Attorney, Epstein Becker Green, Labor and Employment Law Attorney
Member of The Firm

David J. Clark is a Member of the Firm in the Litigation and Employment, Labor & Workforce Management practices in Epstein Becker Green’s New York office. His practice concentrates on litigating complex commercial and employment-related disputes before state and federal courts and arbitration tribunals. Mr. Clark represents clients in a wide range of industries, including financial services, advertising and media, accounting, banking, insurance, managed care, and retail brands.

212-351-3772
Advertisement
Advertisement