In a move that could have wide-ranging implications in the tech industry and beyond, Microsoft Corp. said that it will remove noncompetes from its employment agreements.
The tech industry leader will no longer include noncompetes in agreements with U.S. employees and will no longer enforce existing noncompetes. According to a company statement written by Deputy General Counsel Amy Pannoni and Human Resources Vice President Amy Coleman, Microsoft said its move is an effort to foster a workplace that “attracts and inspires world-class talent to unlock innovation aligned to our mission.”
Microsoft also said it does not believe in using noncompetes as a retention tool.
Only time will tell whether Microsoft’s move portends a trend in the tech industry or whether it will stand alone, but for now, it is a significant development that we will continue to monitor.