Tag Archives: noncompete legislation

A recent paper, “The Ethics of Noncompete Clauses,” by University of Georgia Professor Harrison Frye, expands the policy discussion around noncompetes, and argues for a more thoughtful analysis. As Professor Frye details, seeing noncompetes “as solely advancing the interests of employers is myopic.”
If you’ve been following along with this series of posts, you know that there have been 66 noncompete bills pending in 25 states this year — plus three pending federal noncompete bills, D.C.’s new law to ban most noncompetes, and a bill to rein in D.C’s new law before it becomes effective (which is anticipated to be in April 2022). Today’s post discusses New Jersey’s proposed noncompete legislation.
The D.C. Council held two proceedings related to its recent noncompete ban last week. During both, at-Large Councilmember Elisa Silverman recommended pushing back the implementation date of the new law to April 1, 2022. During the hearing, the Council received wide-ranging testimony about a potential amendment: some objective, verifiable input and some partisan rhetoric; some spot on and some inaccurate. Now we wait.
This afternoon, President Biden signed an “Executive Order on Promoting Competition in the American Economy,” which included pushing for the regulation of noncompetes by the FTC. Based on his comments during today’s press conference (discussed in the post), we expect that any regulation will be balanced, focusing on regulating the abuses, rather than a throw-the-baby-out-with-the-bathwater wholesale ban.
Three and half months into 2021, and there have been 59 bills pending in 23 states (not counting 2 federal bills, a new DC law, or any proposed bills that are circulating, but have not yet been filed). Four bills have already died — each in a state that had only one pending bill — leaving the current tally at 55 bills pending in 19 states. Today’s post covers the two bills pending in Louisiana.
There are currently 45 state bills pending to modify noncompete law across 21 states — as well as two new federal bills, President Biden’s plan to limit the use of noncompetes, and the FTC’s consideration of regulatory limitations. Iowa has two pending bills.
As regular readers of this blog know, I focus on providing content, and don’t often suggest programs to attend. However, it just so happens that over the course of the next week, there are three programs that all provide some helpful insights, each in a different way. Take a look.