Competition in U.S. Labor Markets: Non-Compete Clauses Increasingly Under Fire
Until fairly recently, non-compete clauses and other employer practices affecting employee mobility and wages were a relatively minor focus of U.S. antitrust enforcement authorities. No more. Over the past few years, the U.S. Department of Justice Antitrust Division (“DOJ”), the Federal Trade Commission (“FTC”), and various state attorneys general have focused significant attention on competition in the labor markets. What do companies need to know about this increased scrutiny? In this article, we:
- review the current state of non-compete clauses and the legal analysis surrounding their enforceability;
- discuss the growing employment policy debate over non-competes and their impact on competition in labor markets; and
- provide practice tips for mitigating antitrust risk and avoiding the significant consequences that can result from antitrust investigations and enforcement proceedings.