Fix errors in your noncompete agreements; don't wait for the Biden crackdown.

President Biden issued an executive order this summer that directs the Federal Trade Commission to pursue new rules to limit (or even potentially ban) employers' use of noncompete agreements, which restrict where people can work after leaving a job.

Critics say that noncompete pacts hurt employees' ability to obtain new jobs and they drive drives down wages.

The FTC is unlikely to recommend outlawing all noncompete agreements. Instead, it may urge earnings limits on the type of employees who can be required to sign noncompetes.

Advice: Don't wait for the FTC's action to review your use of noncompetes, which many employers use too broadly. To be legally enforceable, such pacts must be narrowly tailored to the legitimate business interests you are trying to protect.

For example, if your organization is concerned about protecting confidential information, it's possible that you only need a nondisclosure agreement, not a full noncompete. And if you're worried a departing employee may poach customers or co-workers, then a...

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