July 12, 2021

On Friday, July 9, 2021, President Biden signed a sweeping Executive Order with the stated purpose of seeking to increase competition in the American economy and counter corporate consolidation. The Executive Order is a further signal that the Biden administration intends to take an aggressive view of federal antitrust laws, with the intent of increasing competition in the labor market. Specifically, the Executive Order directs the Federal Trade Commission to issue rules curtailing the “use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.” As we discuss below, the new Executive Order is an extension of the existing trend of enforcement against other restrictive agreements like anti-poaching agreements. Employers should consider what actions they should take to prepare for possible regulatory changes.

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