The enforceability of employee restrictions on competition has traditionally been up the states, with some, like California, largely banning such agreements, while others, like Texas, allowing them with reasonable limitations. On Tuesday, October 25, the White House took the unprecedented step of calling on state legislatures to ban non-competes […]. A news report on the White House announcement can be found here.
Although the Obama administration’s effort will be largely symbolic, and have no legal effect, it is important as it may be the first in a series of steps to apply pressure to states or employers that allow restrictions on employee competition…
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