Survey: Proposed Federal Ban on Non-Competes 

1.Does your company utilize contract clauses such as non-competes, non-solicits or forfeiture provisions in equity award agreements, severance agreements or employment agreements? (pick only one)

Yes, we utilize such clauses including non-competes (where permissible).

Yes, we utilize such clauses other than non-competes.

No, we do not utilize any of these types of contract clauses.

Other (please specify)

2.If your company utilizes non-competes, in which document(s) are they included? (Please select all that apply.)

In the employment agreement.

In the equity plan or award agreement.

In the severance plan document or severance agreement.

Other (please provide the location)

3.Which employment arrangements are subject to non-competes?

Other (please specify)

4.Approximately what percentage of your U.S. workforce is subject to non-compete restrictions?

Less than 1%

Between 1% and 10%

Over 10% but less than 20%

More than 20%

5.How long is the non-compete agreement in effect following the employee's departure?

Up to 3 months

Between 3 months and 1 year

Up to 2 years

Variable based on employee (please explain)

6.If an employee is entitled to a severance benefit, does the non-compete period cover the same period as the benefit (e.g., a severance benefit of 2x salary would equal a non-compete of two years)?

Yes

No, shorter

No, longer

Variable based on employee (please explain)

7.In the past years, approximately how many times has:

An employee joined a competitor based on a successful negotiation between your company and the competing company? For example, you may negotiate that the competing company must hire the employee into a less sensitive role for a period of time.

An employee violated a non-compete agreement (for example, because no negotiation was attempted or successfully concluded)?

An employee violated a non-compete and your company pursued enforcement?

8.If your company utilizes forfeiture clauses, which employees are subject to these?

Named executive officers

All executives

All equity recipients

All employees

Variable based on employee (please explain)

9.Which actions on the part of the employee may result in forfeiture under the terms of the clause? Please select all that apply.

Working for a competitor post-departure

Soliciting other employees or customers

Breaching company confidentiality agreements

Disparaging the company

Variable based on employee (please explain)

10.Thinking about levels of employment within your company, if there were to be some type of ban put in place, where could you see drawing the line?

A ban on non-competes for all hourly workers.

A ban on non-competes for all hourly workers plus salaried employees under a certain salary threshold.

A ban on non-competes for all hourly workers plus salaried employees under a certain level (director and below).

A ban on non-competes for all workers except “senior executives”.

A ban on non-competes for independent contractors.

I would not support any ban, even if it had a number of exceptions.

Variable based on employee (please explain)

11.Thinking about potential exceptions that might be needed to counter any ban on non-competes, which exceptions would be important to your business?

An exception to allow for employment contract provisions that protect intellectual property and trade agreements.

An exception to allow for employment contract provisions that protect against non-solicitation for customers for a reasonable period of time.

An exception to allow for contract provisions that prevented someone who sold their business from competing against the business they sold for a reasonable period of time.

An exception for employees that have a reasonable amount of equity in the business.

An exception for contract provisions that would require a portion of stock grants, bonuses, training costs, etc. be repaid as part of any move to a competitor.

An exception for where an employee received a severance.

Other exceptions that would be important (please specify)

12.Would a near-total ban on non-competes have a negative impact on your talent or compensation strategy? If so, please explain.

No.

Yes, it would have a negative impact on my talent strategy (please specify).

Yes, it would have a negative impact on my compensation strategy (please specify).

Other (please specify)

13.Specifically, would a near-total ban on non-competes cause you to do any of the following:

Reduce the amount you invest in training new employees.

Reduce the extent to which you share sensitive information with employees.

Reduce compensation in any manner.

Defer compensation in any manner.

None of the above.

Other (please specify)

Current Progress,

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