Enforcement is on the Rise Against Non-Compete Agreements. Is Your Business Ready?

A whopping one in five workers in the U.S. has signed a non-compete agreement. Companies use these contracts to protect trade secrets, reduce employee turnover, and improve their business leverage. Detractors say non-competes decrease wages and are burdensome to workers. Private litigation is on the rise against non-competes and some states are now passing limits on their use.

At the federal level, non-competes and other employment restrictions have drawn the attention of antitrust enforcers, as well as the Department of Labor and National Labor Relations Board. The Federal Trade Commission is also weighing a new rule that would ban the imposition of these contracts on workers — causing concern among employers about the future use of non-competes, and potentially impacting both employment and antitrust laws.

Join The Sidley Podcast host and Sidley partner, Sam Gandhi, as he speaks with two of the firm’s thought leaders on these issues — Jim Lowe and Terri Reuter. Jim is a partner in Sidley’s Antitrust and Competition practice. Terri is a partner in the firm’s Labor, Employment and Immigration practice. Together, they discuss how non-compete agreements are utilized, the regulation and enforcement involved, and what employers should know to protect their businesses.

Executive Producer: John Metaxas, WallStreetNorth Communications, Inc.