In his byline article “A new era for noncompetes under the Biden administration” for the Daily Journal, partner Patrick Hammon takes a look at President Joe Biden’s “Plan for Strengthening Worker Organizing, Collective Bargaining, and Unions,” wherein the president proposes eliminating certain barriers to competition, such as noncompete clauses. Biden is on record saying that noncompete clauses have suppressed wages and that “companies should have to compete for workers just like they compete for customers.”
Patrick explains that Biden’s goal to eliminate noncompetes is not new, as the Obama administration proposed similar initiatives. What’s different this time is that the Democratic Party now controls the White House, the House and the Senate for the first time since 2008-2010, and as a result, change appears likely.
According to Patrick, it is possible large companies will find the proposed legislation more acceptable if Congress imposes a uniform and standardized set of rules. However, the tech industry will be watching this legislation closely, as the industry has historically had the greatest risk associated with employee mobility.
To read the full article, visit the Daily Journal. (subscription required)