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The Future of Restrictive Covenant Under Biden Administration

While 2021 brought major challenges and changes to the workplace with respect to mask and vaccination mandates, recent actions taken by federal and state legislatures point to more changes in 2022, several of which pertain to non-compete agreements, restrictive covenants, and trade secrets. This coupled with increased mobility in the job market is a major factor behind an uptick in restrictive covenant enforcement suits. 

One study estimates that approximately 64% of executives employed in publicly listed companies in the U.S. are bound by contracts with restrictive covenants. The tight job market, which makes it harder for employers to fill vacancies is another factor in the growth of such suits.

This presentation addresses how to more effectively prepare contracts to protect your client in the event of future disputes. Receive in-the-trenches experience, case law highlights, and contract preparation and litigation strategies.
As these new laws are enacted, employers should evaluate whether and to what extent their non-competition and non-solicitation agreements are enforceable in the jurisdictions in which they operate and whether they have taken appropriate steps in jurisdictions with minimum earnings threshold changes.