This report provides
information on state policies related to non-compete agreements as of October
2016. It is intended as a contextual guide for state policymakers, advocates,
and students who are considering non-compete reform and/or interested to learn
more about key dimensions of the current policy debate.
Introduction
Non-compete clauses (“NCC”)
have traditionally been used to protect trade secrets by maintaininga “buffer”
time period before a departing employee may take a job with a competitor.
Evidence shows that
non-compete clauses, once linked with highly compensated managerial
andexecutive talent, have become more widespread and are shifting to affect
more workers. A 2016U.S. Treasury Department report cited research indicating
that 18 percent of all workers and 15percent of employees without a college
degree are currently covered by a non-compete agreement.
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