Biden administration aims to rein in abusive non-compete agreements
- President Joe Biden signed an executive order in July calling on the Federal Trade Commission to write a rule that reins in employers' use of unfair non-compete agreements.
- Non-compete clauses are legal contracts between employers and employees that generally limit where a person can work after leaving a job.
- Nearly a fifth of workers are subject to the clauses, according to one estimate, including many low-wage employees.
The Biden administration wants to rein in use of abusive non-compete agreements by businesses.
A non-compete is a legal contract between an employer and an employee. Typically, businesses use them to restrict workers from accepting a job with a competitor for a certain time period after employment. Businesses generally use them as a safeguard, to protect trade secrets and proprietary information.
President Joe Biden called on the Federal Trade Commission to write a rule to "curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility."
The directive was part of a broad executive order issued this month to promote competition in the …
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