Regulation of non-competition agreements or provisions has traditionally been governed by state law. As set forth below, however, a new Executive Order may signal that change is coming on the federal level.

Background -

A non-compete clause or provision (“Non-compete”) typically restricts an individual’s entitlement to work for their former employer’s competitors (however narrowly or broadly defined) or operate their own competing business both during and after leaving employment. Non-competes vary in duration and geographic scope and may be part of a standalone agreement, a larger employment agreement, or a narrower set of restrictions.