News & Analysis as of

Non-Solicitation Agreements State and Local Government Non-Compete Agreements

Schwabe, Williamson & Wyatt PC

Shifting rules on noncompetes leaves Oregon businesses flustered

Employers in Oregon and across the U.S. are struggling to understand how to respond to recent conflicting decisions around noncompete clauses, which restrict workers from changing jobs in the same industry. Originally...more

Steptoe & Johnson PLLC

The Federal Trade Commission Ban on Non-Competes and its Impact on Transitioning Representatives and Advisors

Steptoe & Johnson PLLC on

On April 23, 2024, the Federal Trade Commission (FTC) issued its final rule banning non-compete provisions nationwide (the Rule). While the FTC contends that non-competes keep wages low, suppress new ideas and stifle the...more

Perkins Coie

Washington State Tightens Noncompete Restrictions

Perkins Coie on

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

Mintz - Employment Viewpoints

New Legislative Session, New Attempts at Banning Non-Competes in New York (City)

Following the recent failed attempt at broadly banning non-compete agreements in New York statewide (discussed here), three new bills were just introduced to do the same, this time in New York City.   The most comprehensive,...more

Foley Hoag LLP

New York May Soon Ban Use of Non-Compete Agreements

Foley Hoag LLP on

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

Sheppard Mullin Richter & Hampton LLP

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

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

McDermott Will & Emery

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

McDermott Will & Emery on

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

Perkins Coie

New York State Legislature Passes Bill Banning Noncompete Agreements

Perkins Coie on

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

Harris Beach PLLC

New York State Moves to Ban Employee Non-Compete Agreements

Harris Beach PLLC on

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

Foley Hoag LLP

Employers Should Revisit Their Non-Compete Agreements for 2023

Foley Hoag LLP on

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

Woods Rogers

FTC Proposes Rule Banning Non-Compete Clauses

Woods Rogers on

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

Brooks Pierce

No More Non-Competes? Impact of FTC’s Proposed Rule

Brooks Pierce on

Non-compete agreements have had a target on their back for some time, with several state laws already on the books to prohibit or significantly limit their use. (See laws in California, Colorado, Illinois, Maine, Maryland,...more

Shutts & Bowen LLP

Federal Ban on Non-Competition Agreements Introduced in the House of Representatives

Shutts & Bowen LLP on

On September 1, 2022, Representative Mike Garcia introduced H.R. 8755, titled The Restoring Workers’ Rights Act (“RWRA”) to the House of Representatives, and if it passes and is ultimately signed into law, it will ban...more

Sheppard Mullin Richter & Hampton LLP

Colorado’s New Restrictive Covenant Law Now Effective

On August 10, 2022, Colorado House Bill 22-1317 became law. Following the national trend of limiting employer use of non-compete and non-solicit covenants, Colorado now prohibits the use of non-competes and non-solicits...more

Faegre Drinker Biddle & Reath LLP

Several States are Increasing Penalties for Enforcing Non-Compete Agreements

As non-competition laws and the scrutiny of non-compete agreements continue to be in the spotlight, several states are revisiting their non-compete laws. Colorado has been in the spotlight after the Colorado Legislature...more

McDermott Will & Emery

Illinois Enacts New Noncompete and Nonsolicit Law

McDermott Will & Emery on

Illinois has enacted a new law governing restrictive covenants: Public Act 102-0358. This law outlines the requirements for valid noncompetition and nonsolicitation agreements, and enforcement of those covenants. It will...more

Morrison & Foerster LLP

Illinois Ushers In New Restrictions On Non-competes and Non-solicits

On the heels of the bi-partisan introduction of the Workforce Mobility Act in Congress in February 2021, on May 31, 2021, the Illinois General Assembly passed amendments to the Illinois Freedom to Work Act (the “Amendments”)...more

Sheppard Mullin Richter & Hampton LLP

What Employers Need to Know About New Non-Compete Legislation in Illinois

Following a nationwide trend, Illinois has proposed significant legislation affecting employee restrictive covenants, such as non-compete agreements. While the proposed law does not dramatically change most aspects of the...more

Sheppard Mullin Richter & Hampton LLP

Employment Agreements: DC’s Recent Ban on Non-Competes is One of the Broadest in the Country

On January 11, 2021, the mayor of the District of Columbia, Muriel Bowser, signed the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”), which is set to be one of the broadest and most expansive bans on...more

Bradley Arant Boult Cummings LLP

Everything You Need to Know (And Probably Don’t) About Covenants Not to Compete - Alabama

The next state in our series exploring non-compete agreements is Alabama. The Yellowhammer State has a fulsome history of litigation (resulting in many reported decisions) involving non-competes and other post-employment...more

Bradley Arant Boult Cummings LLP

Everything You Need to Know (And Probably Don’t) About Covenants Not to Compete - Mississippi

The next state in our series exploring non-compete agreements is the Magnolia State, Mississippi. Unlike Texas and Louisiana, Mississippi’s noncompete laws are purely creatures of the common law. Mississippi has no statutory...more

Bradley Arant Boult Cummings LLP

Everything You Need to Know (And Probably Don’t) About Covenants Not to Compete - Louisiana

The next state in our series exploring non-compete agreements is Texas’ neighbor to the east, Louisiana. As I like to say, when you travel east and cross the Sabine River from Texas to Louisiana all the words change but the...more

Bradley Arant Boult Cummings LLP

Everything You Need to Know (and Probably Don’t) About Covenants Not to Compete - Texas

A key employee just left. He was intimately involved in a major transaction. He knows all the secrets of a $40 million deal. To make matters worse, he is going to a competitor. You have a non-compete – what can you do? Or,...more

Rivkin Radler LLP

Recent Commercial Division Decision Highlights That Sometimes Less Is More

Rivkin Radler LLP on

A recent decision by New York County Commercial Division Justice, the Hon. Barry Ostrager, gave litigants a reminder of the preference that New York courts have for reasonable non-solicitation and confidentiality clauses that...more

Littler

Colorado Court Decides Issue of First Impression on Restrictive Covenants

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The Colorado Court of Appeals recently decided an issue of first impression regarding noncompetition and nonsolicitation agreements. The decision in 23 LTD v. Herman highlights an important consideration for Colorado...more

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