Biden Noncompete Order Risks Legal Disputes Over FTC Overreach

Federal limits on employee noncompete agreements are poised to set the Federal Trade Commission up for legal challenges, especially if it broadly bans the contracts that the Biden administration says hurt workers and stifle competition.

President Joe Biden called on the FTC to ban or limit employee noncompetes as part of a broad executive order issued July 9 aimed at improving competition within the economy. The order stops short of specifying how to limit the pacts, which prohibit employees from working for a competitor as a way to protect company trade secrets and investment in employee training. A complete ban ...