What does President Biden’s Executive Order barring non-competition contracts mean to you?

Aug 9, 2021 | Employment, General Interest

President Biden’s July 9 executive order on promoting competition in the American economy  and barring at least some noncompete agreements has led to much speculation regarding what will happen next and what the Federal Trade Commission will propose, according to this article recently published at Bloomberglaw.com.

Employers Take Note—Noncompete Times, They Are a-Changin’


The order directs several federal departments and agencies to take action or provide input on 72 items that target various industries, including advertising, air travel, farming, financial services, journalism, shipping, telecommunications, and technology. It aims to increase competition in the labor market by encouraging the Federal Trade Commission to ban or limit noncompete agreements.

What all this means is far from clear, but in Michigan, noncompetition agreements have been enforceable for many years, so long as they are “reasonable.” That could change in the future, depending on what the FTC recommends.

If you are a party to a noncompetition agreement, as either an employee or an employer, you will want to keep in contact with your lawyer to make sure you monitor this extremely interesting possible change in our employment law.