Non-compete clauses increasingly a liability for businesses

Published September 4, 2018 4:00am ET



Businesses are facing increasing pressure to get rid of non-compete clauses in worker contracts as states and the courts chip away at the practice. Once a mainstay for companies, these provisions have increasingly become a liability.

Non-competes are clauses in employment contracts that prevent workers from taking jobs with rival companies for set periods of time. Originally created as a way to protect trade secrets, their use became widespread in recent decades, but businesses are rethinking them now.

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Labor