Private Law Theory

ABSTRACT
In this chapter, we outline the current problems posed by employee non-competes and possible solutions. We first discuss the theory and empirical evidence on employer labour market power and the way in which non-competes aggravate this problem. We then present a brief outline of the current law on employee non-competes in the United States, Europe and other countries. Finally, we outline current efforts and proposals in law reform to ameliorate or eliminate the negative effects of employee non-competes both by directly prohibiting or limiting the enforceability of such agreements, or by applying existing antitrust principles or competition policy to the problem. We close with our thoughts on the problem and reflections for future academic work.

Dau-Schmidt, Kenneth Glenn and Barton, Jozie M, Non-Compete Covenants (January 30, 2023), in The Oxford Handbook of the Law of Work (Guy Davidov, Brian Langille and Gillian Lester, Editors, Forthcoming 2023); Indiana Legal Studies Research Paper Forthcoming.