On August 2, 2021, Len Gordon was quoted in Bloomberg Law on the White House’s plan to restrict employee noncompete agreements via federal rulemaking.
According to the article, President Biden called on the Federal Trade Commission (FTC) in July to issue a regulation banning or limiting the use of noncompete clauses in employment contracts, which prevent millions of U.S. workers from going to work for a competitor. There’s debate, however, about the extent of rulemaking authority that Congress has granted the FTC.
“I suspect the FTC rulemaking may be used as a stalking horse to try to pressure Congress to pass the legislation,” said Gordon.
Biden’s wide-ranging executive order comes as two separate bipartisan proposals to restrict noncompetes are pending in Congress.
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