Laily Sheybani Examines Criminal Liability for Non-Compete Clauses for Business Crimes Bulletin
In a November 10, 2021 article for Business Crimes Bulletin, "As Federal Antitrust Prosecutions Rise, Potential Criminal Pitfalls Loom for Non-Compete Clauses," Laily Sheybani examines the increase in federal antitrust prosecutions and the related criminal liability risk for non-compete clauses.
The author notes:
"On July 9, 2021, President Joe Biden issued his “Executive Order on Promoting Competition in the American Economy” (EO), establishing his administration as one that will prioritize the importance of competition in the workforce. The EO strikes the same chord as a recent Tweet from President Biden which states: 'It’s simple: companies should have to compete for workers just like they compete for customers. We should get rid of non-compete clauses and no-poaching agreements that do nothing but suppress wages.'"
"We have begun to see the fruits of this aggressive new approach. This year, the Department of Justice (DOJ) filed the first-ever criminal prosecutions of employers and individuals allegedly involved in inter-business agreements to avoid raising employees’ pay."