Kesselman Brantly & Stockinger Partner Majed Dakak and Associate Ryan Davis recently authored an article for The Recorder, “Federally Banning Non-Compete Agreements.” The article examines a possible federal ban on non-compete agreements and how this could impact hiring and strategy for businesses.
Many employees in the U.S. have in their employment contracts non-compete clauses that prohibit them from working for or starting a competing business for an amount of time after leaving their current employer. There are also often “hidden” non-competes in many overly broad employment agreements, including confidentiality clauses and non-solicitation agreements.
Whether such policies are beneficial to the economy is a hotly debated topic. Proponents say non-compete agreements reduce the risks of departing employees misusing trade secrets and other intellectual property, but opponents say non-competes prevent talent from best allocating their skills, hurting innovation.
The authors discuss the potential for a federal prohibition on non-compete agreements this year that could forge the way for more flexible worker mobility in numerous industries.
Read the full article in The Recorder here.