October 25, 2021

Volume XI, Number 298

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October 25, 2021

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#WorkforceWednesday: The Future of Non-Compete Agreements [VIDEO]

Welcome to #WorkforceWednesday. This week, we look at the restriction and legislation of non-compete agreements.

The Future of Non-Compete Agreements

The restriction and legislation of non-compete agreements is gaining traction around the country, with states and the federal government passing or proposing new restrictions on the clauses. In July, President Biden signed an executive order that discussed the regulation of non-compete agreements, which in the past has only been the province of the states. Attorneys Pete Steinmeyer and Brian Spang discuss how the executive order impacts employers, changes to expect, and how to best prepare for the future.

More on Biden’s Executive Order on Non-Compete Agreements

On July 9, 2021, President Biden signed the Executive Order on Promoting Competition in the American Economy, which encourages the Federal Trade Commission (“FTC”) to employ its statutory rulemaking authority “to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.” Executive Order, Section 5(g). While the language in this executive order refers to the “unfair” use of non-compete clauses, the Biden administration’s explanatory statement makes clear that “the President encourages the FTC to ban or limit non-compete agreements” altogether. Read more about this executive order.

How Jurisdictions Are Taking Action

Just as employers in the District of Columbia begin navigating the District’s recently enacted non-compete ban, changes to the law are already in the works. As we previously reported, earlier this year, the District enacted the Ban on Non-Compete Agreements Amendment Act of 2020 (D.C. Act 23-563) (“Act”), which prohibits employers from requiring or requesting that an employee sign any agreement containing a non-compete provision. For a more detailed summary and analysis of the Act, please refer to our December 22, 2020, article.

Governor Steve Sisolak recently signed Assembly Bill 47, which amends Nevada’s statute governing non-compete agreements (Nevada Revised Statutes 613.195). Employers should be aware of several changes to the law, which will go into effect on October 1, 2021. For more on this amendment, click here.


Other Highlights

Biden’s Proposed Funding to Focus on Enforcement, Oversight, and More

President Biden’s $6 trillion 2022 budget proposal focuses on worker protections—including the American Jobs Plan and the American Families Plan. Both of these plans contain numerous labor and employment initiatives. The budget proposes increased funding for the Department of Labor, the Equal Employment Opportunity Commission, and the National Labor Relations Board. Read more about this proposal.

Vaccination Mandates for Health Care Workers in California with Deadline Set

On August 5, 2021, the California Department of Public Health issued a new State Public Health Order (“Order”), which expressly mandates the COVID-19 vaccine for health care workers, as defined by the Order. Additionally, the Order identifies the health care facilities subject to the Order’s requirements. For more on the Order, click here.

©2021 Epstein Becker & Green, P.C. All rights reserved.National Law Review, Volume XI, Number 223
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About this Author

Peter Steinmeyer, Labor Attorney, Epstein Becker Law Firm
Member

PETER A. STEINMEYER is a Member of the Firm in the Labor and Employment practice of Epstein Becker Green and serves as the Chicago office Managing Shareholder. Practicing in all aspects of labor and employment law, he is also Co-Chair of the firm's Non-Competes, Unfair Competition and Trade Secrets Practice Group.

Mr. Steinmeyer advises clients on the enforcement and drafting of non-compete, non-solicitation, and employment agreements, litigates trade secret, non-compete, non-solicitation, raiding, and other restrictive covenant matters in...

312-499-1417
Brian Spang, Epstein Becker Law Firm, Chicago, Labor and Employment Attorney
Member

Brian Spang is a Member of the Firm in the Employment, Labor & Workforce Management practice, in the Chicago office of Epstein Becker Green. He has nearly 20 years of experience litigating on behalf of Fortune 50 companies, as well as representing, counseling, and advising Fortune 50 and mid- and small-sized employers on all aspects of employment law.

312-499-1462
George Carroll Whipple III, Epstein Becker Green, Workforce Management Lawyer, Hiring Matters Attorney
Member

GEORGE CARROLL WHIPPLE, III, is a Member of the Firm in the Employment, Labor, and Workforce Management practice, in the New York office of Epstein Becker Green. He hosts the firm's innovative weekly video program, Employment Law This Week.

Mr. Whipple:

  • Counsels employers on workplace issues, including hiring and promotion, firing and discipline, wage and hour, and the implementation of employment policies, to ensure compliance with federal and state laws

  • ...
212-351-3773
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