A federal prohibition on non-compete agreements could be in the cards for 2022, forging the way for more flexible worker mobility in numerous industries. Prohibiting such restraints will have hiring and strategy implications for businesses.

Many employees in the U.S. have in their employment contracts non-compete clauses that prohibit them from working for or starting a competing business for an amount of time after leaving their current employer. There are also often “hidden” non-competes in many overly broad employment agreements, including confidentiality clauses and non-solicitation agreements.