In the article “Is non-compete legislation a bridge too far?” Human Resource Executive turned to Philadelphia partner Dan Aiken for insight into the proposed Workforce Mobility Act and its impact on employers.
The publication reports on the Workforce Mobility Act, a new bipartisan legislation that aims to curtail abuses of non-compete agreements in the workplace which, if passed, would have far-reaching negative implications for employers of all sizes, especially smaller family-owned businesses, Aiken says.
According to Aiken, non-competition agreements are an important tool and insurance policy for employers. He added that without them, disloyal or dishonest employees would essentially be allowed to walk over to a rival and begin trading on the previous employer’s customer goodwill and business know-how.
“The Workforce Mobility Act completely strips employers of this important protection and, thereby, leaves them exposed to the loss, or substantial reduction in value, of the company’s confidential information and customer relationships,” he said, “both of which are almost impossible to recover, once lost.”