Although non-competes outside of California are typically enforceable (subject to each state's laws), the White House issued a report this summer discussing what it believes to be misuse of non-competes, particularly in low-wage fields where they are less likely to have valid uses, or with workers who do not have access to information that would rise to the level of trade secrets. The White House, Treasury, and the Department of Labor intend to convene a group of experts in labor law, economics, government, and business to facilitate discussion on non-competes and their consequences, the goal being to identify key areas where implementation and enforcement of non-competes may present issues, to examine promising practices in states, and to put forward a set of best practices and call to action for state reform. There has been activity regarding non-competes at the state level as well – the state of Washington recently tried, but failed to pass a bill seriously limiting the use and enforceability of non-competes. Given the ongoing scrutiny of non-competes, great care should be exercised in their use, keeping each state's individual requirements in mind.
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