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Noncompete Agreements a Tricky Target for Obama Administration

5.16.16

The article, “Noncompete Agreements a Tricky Target for Obama Administration,” featured on Business Insurance, addressed how a White House report that is critical of noncompete agreements could be influential in state legislatures but is unlikely to lead to federal legislation.  

Mike Elkon said he doubts any federal legislation on this issue is likely to be approved. The Defend Trade Secrets Act was able to receive bipartisan support because “it's something American business wants” and “there's not really a natural constituency against it.”

“The noncompete issue, at least the way the White House is portraying it,” turns it into more of an employer vs. employee issue, said Mike.

“The argument the White House is using is that employers have used noncompetes to depress wages and reduce mobility.” He said the report may be influential in Democrat-controlled states.

To read the full article, please visit Business Insurance.

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