Impact on Private Fund Advisers of Obama Administration’s and State Lawmakers’ Actions to Restrict Use of Non-Compete Agreements
The Hedge Fund Law Report has published an article by Friedman Kaplan litigation partners Anne Beaumont and Lance Gotko discussing the Obama Administration's call to action for state legislators to significantly curtail employers' ability to use and enforce non-compete provisions. The measure follows efforts already made by some states to attempt to restrain non-competes. Proposed and promulgated laws, as well as legislation proposed from the Call to Action, sweep broadly and could have significant effects. Although the Call to Action was at least partially motivated by concern for low-wage workers, the broad effects of the legislation could significantly impact a private fund adviser's current practices if passed where they are located.
In their article, Ms. Beaumont and Mr. Gotko review the Call to Action, responses from various state policymakers, and discuss the likely impact on private fund advisers if similar legislation is passed.