The use of non-competes that prohibit employees from taking other jobs is being attacked by a series of proposed new laws. A number of states have introduced legislation, and bills are working their way through Congress that would prohibit employers from enforcing or threatening the use of non-competes.
It is expected that many of these non-compete restrictions will be enacted over the next few years, and it is assumed that they would invalidate current non-compete provisions. The expected regulations may have a collateral, yet significant impact on Golden Parachute protections for executives in publicly-traded companies. Employers can protect themselves and their trade secrets with confidentiality agreements and similar restrictions, and should be discussed with legal counsel.