News & Analysis as of September 18, 2024

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Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -

Washington State Further Restricts Noncompetition Agreements

McDermott Will & Emery on 6/3/2024

Effective June 6, 2024, the state of Washington will further restrict the use of noncompetition agreements. This article provides background on the current law governing noncompetition agreements in Washington and walks...more

Washington’s Amended Non-Compete Law Creates New Considerations for Employers

Sheppard Mullin Richter & Hampton LLP on 5/21/2024

Washington Governor Jay Inslee recently signed Senate Bill 5935 into law, amending and expanding Washington’s statute restricting the enforceability of noncompetition covenants (Revised Code of Washington 49.2). The amended...more

Washington State Tightens Noncompete Restrictions

Perkins Coie on 5/2/2024

Washington state businesses that have noncompetition agreements with employees or independent contractors will be subject to new requirements under the latest amendment to the state’s noncompetition law beginning June 6,...more

Amendments To Washington State’s Noncompete Statute Go Into Effect June 6, 2024

Seyfarth Shaw LLP on 4/3/2024

Effective January 1, 2020, Washington enacted a noncompete statute which, among other things, required employers to satisfy notice obligations and compensation thresholds to use noncompete agreements with employees and...more

Drafting Non-Competes in a Shifting Regulatory Landscape

Foley & Lardner LLP on 3/19/2024

As our readers are aware, we have been tracking the ongoing trend of restricting employee non-compete agreements by various states and the federal government, including the FTC and NLRB. In fact, some states — most notably...more

New York Governor Vetoes Proposed Ban on Noncompete Agreements

Troutman Pepper on 12/29/2023

Q. Did New York institute a ban against noncompete agreements? ...more

Georgia Signals Greater Leeway in Revising Overbroad Non-Competes

Seyfarth Shaw LLP on 12/13/2023

In a recent decision, the Eleventh Circuit seemed to approve a more forgiving standard for reviewing restrictive covenants. Courts generally have three colors in their markup kit for restrictive covenants. The first—and most...more

New York Governor Hochul Rejects Wholesale Ban on Non-Compete Agreements

Seyfarth Shaw LLP on 12/4/2023

On November 30, 2023, Governor Kathy Hochul answered the long-awaited question of whether New York would join California, North Dakota, Oklahoma and, most recently Minnesota, as a state banning the use of non-compete...more

California Takes On Criminal Background Checks, Noncompetes

Manatt, Phelps & Phillips, LLP on 9/25/2023

In California regulatory news, the Civil Rights Council, an arm of the Civil Rights Department, approved changes to how employers legally conduct criminal background checks, and Gov. Gavin Newsom signed into law a bill...more

Q2 Employment Law Updates: Non-Competes, Religious Accommodation and More

DarrowEverett LLP on 7/18/2023

So far, 2023 has been a wild ride for employers, a theme that looks to be continuing into the third quarter of the year. While certain predictions we made during Q1 came true in Q2 (we are looking at you, NLRB), others such...more

June Tip of the Month: New York State Legislature Passes Bill Banning Noncompete Agreements

Perkins Coie on 6/28/2023

On June 20, 2023, the New York State Legislature passed a bill which, if signed by Governor Kathy Hochul, will impose a blanket ban on—and render unlawful—all future noncompete agreements in New York. As explained more fully...more

Minnesota Prohibits Post-Employment Noncompetes

Perkins Coie on 6/28/2023

On May 24, 2023, the state of Minnesota enacted a labor bill (SF 3035) that prohibits employers’ use of noncompetes, effective July 1, 2023. The ban does not apply retroactively to noncompetes signed prior to July 1, 2023....more

New York May Soon Ban Use of Non-Compete Agreements

Foley Hoag LLP on 6/27/2023

On June 20, 2023, the New York State Assembly passed bill A01278 (the “Bill”), which, if it goes into effect, will ban the use of new employee non-compete agreements in New York. The New York State Senate already passed the...more

The End of Non-Competes in New York? State Legislature Passes Non-Compete Ban Moving One Step Closer to the Edge

Sheppard Mullin Richter & Hampton LLP on 6/23/2023

A sweeping bill that would effectively ban all newly entered non-compete agreements (and potentially impact provisions and agreements that act as a de facto non-compete) for all employees, regardless of wage or income level,...more

New York Legislature Passes Noncompete Ban and Awaits Governor’s Signature

McDermott Will & Emery on 6/23/2023

The New York State Legislature has passed a bill that will prohibit employers from entering covenants not to compete with their employees and contractors. The bill specifically exempts nondisclosure and client nonsolicitation...more

Employment Flash - June 2023

Skadden, Arps, Slate, Meagher & Flom LLP on 6/23/2023

New York, Minnesota and NLRB Act To Limit Noncompetes - New York Legislature Passes Bill To Ban Post-Employment Noncompetes - On June 20, 2023, the New York state Legislature passed a bill that bans post-employment...more

New York State Legislature Passes Bill Banning Noncompete Agreements

Perkins Coie on 6/23/2023

The New York State Assembly passed a bill on June 20, 2023, which, if signed by New York Governor Kathy Hochul, will impose a blanket ban on—and render unlawful—all future noncompete agreements. New York’s proposed law is the...more

New York State Moves to Ban Employee Non-Compete Agreements

Harris Beach PLLC on 6/22/2023

New York inched closer to fully banning non-compete agreements on June 20, 2023, with the Legislature approving a bill banning their use in the future. The bill will soon be sent to Governor Kathy Hochul, who is expected to...more

Proposed Bill Outlawing Non-Compete Agreements in New York

Smith Gambrell Russell on 6/22/2023

A sweeping proposed bill (A1278B) amending the New York Labor Law to make unlawful any non-compete agreement has passed the state Assembly and is heading to New York Governor Hochul. If signed, the bill would cover all...more

SuperVision - Labor and Employment Law Insights, Issue 2, June 2023

Spilman Thomas & Battle, PLLC on 6/21/2023

Considerations for Employing AI in the Workplace - What is workplace artificial intelligence or AI? In its simplest form, AI in the workplace is the use of technology or software to monitor employees’ work performance,...more

New Marijuana, Paid Leave, and Non-Compete Laws Will Impact Minnesota Employers

Ballard Spahr LLP on 6/5/2023

Minnesota Governor Tim Walz has signed into law three bills that create new obligations for Minnesota employers....more

Federal Trade Commission proposes a noncompete ban: Five things to know

Society of Corporate Compliance and Ethics... on 4/6/2023

By now, most compliance professionals are aware of the Federal Trade Commission (FTC) press release from January 5, which announced its proposed rule to ban noncompete clauses. The FTC proposed adding a new subchapter J,...more

Employers Should Revisit Their Non-Compete Agreements for 2023

Foley Hoag LLP on 2/6/2023

In recent years, there has been a shift across the U.S. to restrict the use of non-compete agreements. In fact, on January 5, 2023, the Federal Trade Commission (“FTC”) proposed a new rule that would effectively ban the use...more

FTC Proposes Rule Banning Non-Compete Clauses

Woods Rogers on 1/27/2023

On January 5, 2023, the Federal Trade Commission (FTC) proposed a rule to ban non-compete clauses in employment agreements, which it asserts hurts workers and harms competition. The proposed rule would prevent employers from...more

Top Noncompete Developments of 2022

Faegre Drinker Biddle & Reath LLP on 12/28/2022

2022 was a relatively quiet year in terms of noncompete developments. However, both state legislatures and courts continued to take steps to narrow the circumstances under which noncompetition and employee non-solicitation...more

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