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Restrictions on Noncompetes: Recent FTC Developments on Wage and Hour Workers

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Wednesday, October 26, 2022

Recorded event now available

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This CLE course will advise employment counsel on the executive order that President Biden signed regarding noncompete agreements. The panel will discuss recent FTC developments and the state law trend of disfavoring restrictions on employee mobility, such as noncompete agreements.


On July 9, 2021, President Biden signed the sweeping Executive Order on Promoting Competition in the American Economy, which, among other initiatives, "encouraged" the FTC to use its statutory rulemaking authority "to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility." While efforts to curtail the use of noncompetes are not new, this latest executive action could signal increased momentum towards nationwide restrictions banning or restricting the use of noncompetes for workers in a wide range of industries.

The White House's explanatory fact sheet clarifies that "the President encourages the FTC to ban or limit non-compete agreements." A nationwide rule regarding noncompetes would be an unprecedented move by the federal government.

Previously, the states regulated noncompete agreements. Many--including Illinois, Nevada, and Oregon--have passed legislation limiting the enforcement of noncompetes by setting minimum compensation levels and time limits on the period of restriction. The Executive Order and accompanying fact sheet do not offer details on whether these are the types of limitations the FTC should consider.

Still, they represent common compromises that are short of an outright ban on noncompetes. In addition to President Biden's Executive Order, the Illinois legislature passed new noncompete legislation in late May 2021. The new law will have significant changes for agreements and litigation in Illinois.

Although the FTC's administrative rulemaking process regarding noncompete agreements has not yet been initiated, employers should immediately consider reviewing their workers' noncompete agreements and employment policies for compliance with state law and with consideration of future possible federal action limiting the enforceability of such agreements.

Listen as our expert panel guides employment counsel on state and federal law related to noncompete enforcement as the rules evolve. What steps should counsel advise employers seeking to protect their businesses now?



  1. History of noncompete regulation
  2. Biden Executive Order
  3. FTC possible regulations
  4. Future of noncompete beyond low-wage workers
  5. Best practices for employers in the future seeking to limit unfair competition and protect their businesses


The panel will review these and other critical issues:

  • What does the Promoting Competition in the American Economy Executive Order accomplish?
  • What has the FTC stated or implied regarding any future possible rulemaking?
  • How have states handled restrictions on noncompetes?
  • How can counsel best address the potential limitations on using noncompetes when developing employment policies in the future


Beck, Russell
Russell Beck

Beck Reed Riden

Mr. Beck is a business, trade secrets, and employee mobility litigator, nationally recognized for his trade secrets and...  |  Read More

Bindra, Amit
Amit S. Bindra

The Prinz Law Firm

Mr. Bindra focuses his practice on employment and executive agreements, noncompete, non-solicit and trade secret...  |  Read More

Chun, John
John H. Chun

Herrick Feinstein

Mr. Chun is a seasoned litigator with experience handling a wide range of complex commercial, restrictive...  |  Read More

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