Noncompete Policing Boosted with Second Agency Entering Fray
The Biden administration’s chief labor law enforcer created an immediate problem for employers that use noncompete agreements even as they await a broader ban on those restrictive contracts from another agency, the Federal Trade Commission.
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Tuesday’s memo is just the latest federal effort to take on noncompete agreements, which the Treasury Department found cover about one in five American workers. Banning the clauses in employment contracts would increase wages by nearly $300 billion a year, the FTC said.
The NLRB’s authority on noncompetes isn’t as far-reaching as the FTC. It’s limited to agreements between rank-and-file employees and employers, and can’t touch covenants restricting the post-employment movement of management or supervisors, said Anthony Haller, a partner at Blank Rome.
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"Noncompete Policing Boosted with Second Agency Entering Fray," by Robert Iafolla and Dan Papscun was published in Bloomberg Law on June 2, 2023.