As we close the book on 2021, we take a few moments to reflect on the past year's developments of the law on noncompete agreements ("NCAs"), offer a few predictions as to what we think 2022 may have in store, and leave you with a valuable piece of advice.
The year saw President Biden sign an Executive Order ("EO") entitled "Promoting Competition in the American Economy." This EO does not in itself change the law, but it encourages the Federal Trade Commission ("FTC") to take steps to limit or ban NCAs in the country, which if adopted will be a game-changer. The FTC has begun this process and is currently pondering what action, if any, to take. We expect the FTC to make its decision this year and we will, of course, keep you updated.
Congress also attempted to act on NCAs in 2021. In what has become a pattern in recent years for new congressional sessions, both the House of Representatives and the Senate introduced the Workforce Mobility Act. This bill, if enacted, would drastically limit the use of NCAs throughout the United States. While the bill did not pass, the appetite for federal legislation for some members of Congress remains strong. Expect these efforts to continue into the new year as lawmakers continue this push.
State governments have followed the lead of the federal government and taken their own steps to limit or ban NCAs. The past year witnessed an unprecedented effort in dozens of states to chip away at, or eliminate, the protections employers enjoy from...
; ; ; agreed to pay $17.07 million to settle federal allegations of illegal diversity, equity and inclusion (DEI) hiring practices on Friday, marking the Justice Department's first resolution unde...