The US President Joe Biden signs an executive order which includes 72 initiatives aimed at enhancing competition and a directive encouraging the US FTC to ban or limit employee non-compete agreements

On Friday, July 9, 2021, President Biden signed Executive Order 14036, Promoting Competition in the American Economy, which includes—among 72 initiatives aimed at enhancing competition in the US—a directive encouraging the Federal Trade Commission to ban or limit employee non-compete agreements. Non-compete agreements—provisions most commonly found in employment contracts which prohibit employees from working for a competitor generally for a set period of time and/or in a set region—have historically passed legal muster (generally under state law or federal antitrust law) so long as they are narrowly tailored to address a legitimate business need. From an antitrust perspective, an employer's non-compete agreement with its own employees generally has been reviewed deferentially under the

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Mark J. Gidley, Kathryn Jordan Mims, Kristen O'Shaughnessy, Erin McNamee, Kevin Adam, Jaclyn Phillips, Abdul Hafiz, Tal Marnin, The US President Joe Biden signs an executive order which includes 72 initiatives aimed at enhancing competition and a directive encouraging the US FTC to ban or limit employee non-compete agreements, 9 July 2021, e-Competitions July 2021, Art. N° 101793

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