Biden Proposes Nationwide Non-Compete Ban Wednesday, December 16, 2020
.” His Plan states that “Biden will work with Congress to eliminate all non-compete agreements, except the very few that are absolutely necessary to protect a narrowly defined category of trade secrets, and outright ban all no-poaching agreements,” which are common in franchisor/franchisee and other arrangements. The foregoing statement is consistent with Biden’s previous comments about eliminating non-compete restrictions and no-poaching agreements while on the campaign trail, as well as with the Obama administration’s call for states to ban non-compete agreements.
Whether federal legislation banning non-competes and no-poaching agreements would actually pass remains to be seen. While Democrats have traditionally been more inclined to seek restrictions on the use of restrictive covenants, recently there have been bipartisan efforts to regulate non-compete provisions. The final makeup of the
.” His Plan states that “Biden will work with Congress to eliminate all non-compete agreements, except the very few that are absolutely necessary to protect a narrowly defined category of trade secrets, and outright ban all no-poaching agreements,” which are common in franchisor/franchisee and other arrangements. The foregoing statement is consistent with Biden’s previous comments about eliminating non-compete restrictions and no-poaching agreements while on the campaign trail, as well as with the Obama administration’s call for states to ban non-compete agreements.
Whether federal legislation banning non-competes and no-poaching agreements would actually pass remains to be seen. While Democrats have traditionally been more inclined to seek restrictions on the use of restrictive covenants, recently there have been bipartisan efforts to regulate non-compete provisions. The final makeup of the Senate, as well as the continued effects of the pandemic on the economy, and speci