This week the White House issued a “call to action” regarding the inclusion of non-compete agreements in employee contracts for certain categories of workers.  The White House is encouraging the passage of  new laws by the states limiting non-competes in various industries, even providing guidelines on how to accomplish this goal.  Suggested changes include banning non-compete clauses in the contracts of three different categories of employees:  those below a certain wage or responsibility threshold who are unlikely to be privy to trade secrets, those who work in fields involving public safety and health, and employees who might endure “undue adverse impacts” from such agreements.

The urging from the White House cites worker protection, the public policy interests in increasing competition and the options of less intrusive and more effective legal alternatives as motivation.  In the days following the White House statement, several states have announced their support. New York has already declared its intention to pursue new legislation in support of this goal.  While the White House “call to action” bears no legal force, employers should be aware of the movement in this direction at the state and federal level.  As these laws begin to formulate, employers should consider contract alternatives such as trade secret protections, nonsolicitation agreements and nondisclosure agreements.