David, Brody & Dondershine, LLP Experienced General Business Law Attorneys
2100 Reston Parkway, Suite 370
Reston, VA 20191
703-264-2220
We’ve moved! As of April 30, 2018, our new address is 2100 Reston Parkway, Suite 370, Reston, VA 20191.

White House makes legislative recommendations for non-compete agreements, P.1

Last month, the Obama administration released a report in which it made several legislative recommendations regarding non-compete recommendations. As we noted previously, states currently have different policies regarding non-compete agreements, with some allowing employers more freedom to use these agreements to prevent competition than others.

The report suggested, first of all, that states prohibit non-compete agreements not necessarily for all workers, but at least for specific categories of workers. This recommendation applies to workers who make less than a given wage, workers in public health and safety, workers who are not likely to obtain trade secrets, and workers who are particularly at risk of suffering harm from non-compete agreements. 

Another recommendation the report made is that legislatures pass laws ensuring that employees are protected from unfair negotiation tactics and lack of transparency by employers. This recommendation is aimed at employers who, for instance, propose a non-compete agreement after a job offer or promotion has been accepted or who do not offer some sort of consideration, or quid pro quo, to existing employees who are faced with a request to sign a non-competition agreement.

A third legislative recommendation the administration made is that states enact incentives to employers who negotiate enforceable non-compete agreements, such as prohibiting courts from altering unenforceable non-compete agreements so that they are enforceable. Virginia, it is worth noting, is among a small group of states which already have this rule.

In our next post, we'll look more closely at the rule and draw out some of the implications of these legislative recommendations.

Sources:

Whitehouse.gov, State Call to Action on Non-Compete Agreements, Accessed Nov. 11, 2016.

Whitehouse.gov, Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses, May 2016. 

No Comments

Leave a comment
Comment Information

Contact Us For More Information

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Top

Office Location

David, Brody & Dondershine, LLP
2100 Reston Parkway
Suite 370
Reston, VA 20191

Phone: 703-264-2220
Fax: 703-264-2226
Map & Directions