White House urges ban on noncompete deals for rank and file

BVWireIssue #170-2
November 9, 2016

Noncompete agreements often are a factor in business valuations, including when valuing a workforce in place. The Obama administration is calling on U.S. states to ban noncompete agreements for many workers, saying it would lead to a more competitive labor market and faster wage growth, according to a report from Reuters. The ban would apply to low-wage workers and other employees who are not privy to trade secrets or other special circumstances. The White House says 20% of U.S. workers are bound by noncompete agreements, including 14% of those earning less than $40,000 per year.

Please let us know if you have any comments about this article or enhancements you would like to see.