As part of a continuing effort to challenge certain non-compete agreements as violating Section 7 of the National Labor Relations Act (NLRA), in October 2024, NLRB General Counsel Jenifer Abruzzo issued GC Memo 25-01. The memo focuses on certain “stay-or-pay” provisions, which the memo states are unlawful under the NLRA. The memo provides a framework … Continue Reading
The Illinois General Assembly passed a major bill in May that significantly alters how and when employers can use restrictive covenants with Illinois employees. Illinois Governor JB Pritzker signed the bill into law on August 13, 2021, and it will go into effect January 1, 2022. We provided details and analysis on the new law … Continue Reading
Earlier this month, President Joseph Biden issued an Executive Order encouraging the Federal Trade Commission (FTC) to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.” We joined more than 50 lawyers and paralegals around the country – all of us experienced restrictive covenant practitioners – … Continue Reading
The District of Columbia passed one of the nation’s most stringent regulations on covenants not to compete earlier this year. Except in very limited circumstances, the law states employers may not require or request employees sign an agreement that includes a non-compete provision, and employers cannot have a workplace policy that prohibits an employee from … Continue Reading
There have been whispers of federal regulation of non-compete agreements for years. Multiple bipartisan bills aiming to ban non-competes have fallen to the wayside without traction. The Federal Trade Commission hosted a workshop in January 2020 (attended by our own Erik Winton) “to examine whether there is a sufficient legal basis and empirical economic support” … Continue Reading
Important amendments to Nevada’s non-compete statute, NRS 613.195, recently were enacted when Nevada Governor Steve Sisolak signed into law Assembly Bill 47. Because A.B. 47 does not have a specified effective date, it will go into effect on October 1, 2021, pursuant to Nevada law. Ban on Non-Competes for Hourly Employees First, A.B. 47 bans … Continue Reading
After extensive negotiations between interest groups representing both employees and businesses, the Illinois General Assembly passed a major bill on May 31, 2021, that further limits and clarifies the circumstances in which restrictive covenants can be enforced against Illinois employees. Illinois Governor J. B. Pritzker is expected to sign the bill into law. We provide … Continue Reading
Connecticut lawmakers recently introduced two bills that seek to ban non-competition agreements for physicians. If implemented, this would be the second time in five years that Connecticut has legislated in the area of physician restrictive covenants. In mid-2016, Connecticut enacted legislation that implemented a maximum one-year temporal limitation on physician non-competition agreements, as well as … Continue Reading
New Jersey may be next up to join the growing number of states that significantly restrict the use of non-competition agreements in employment. As we discussed back in December 2017, a bill proposed in New Jersey at the time, Senate Bill 3518, would “impose significant restrictions and limitations” on the use of restrictive covenants in … Continue Reading
The District of Columbia appears poised to join the growing number of nearby states regulating and limiting restrictive covenant agreements in the employment context. Unanimously passed by the D.C. City Council on December 15, 2020 and signed by Mayor Muriel Bowser on January 11, 2021, the “The Ban on Non-Compete Agreements Amendment Act of 2020” … Continue Reading
In the midst of the COVID-19 pandemic, Indiana has enacted a new law governing non-compete agreements used with physicians. Our Practice Group members in Indianapolis authored an article detailing the new law’s requirements. As the article notes, the new law raises multiple unanswered questions. And, while not as sweeping as other statutes, Indiana now joins … Continue Reading
Is anyone focusing on anything other than the COVID-19 Pandemic? Apparently, the Virginia legislature and governor are undeterred, enacting a series of new laws. Among them, Virginia has banned non-compete agreements for lower wage earners, becoming the most recent state to do so. A summary of the key provisions is included in this article written … Continue Reading
On November 14, 2019, the U.S. Senate Committee on Small Business and Entrepreneurship held a hearing to examine recently proposed bills that would regulate non-compete agreements at the federal level. Discussion during the hearing indicates that it may have the necessary support to move forward. Pending Non-Compete Legislation On October 15, 2019, Senators Chris Murphy … Continue Reading
In numerous states throughout the country, legislatures are moving to limit the use and enforcement of non-compete and other restrictive covenant agreements. Two such states, Maryland and Virginia, are seeking to curtail such agreements with regard to low-wage employees. Virginia Senate Bill 1387 On January 17, 2019, the Virginia Senate introduced SB 1387, which would … Continue Reading
On May 8, 2019, Washington Governor Jay Inslee signed into law HB 1450, described as “AN ACT Relating to restraints, including noncompetition covenants, on persons engaging in lawful professions, trades, or businesses[.]” While the Act does not take effect until January 1, 2020, its restrictions apply retroactively to existing agreements signed before that date. Our article … Continue Reading
On April 26, 2019, the two chambers of the Washington Legislature passed Engrossed Substitute House Bill 1450 (“HB 1450” or the “Non-Compete Act”), which regulates non-competition agreements with employees and independent contractors, and severely restricts franchisee no-poach agreements as well as policies against moonlighting. Governor Inslee is expected to sign the Act, which would take … Continue Reading
After enacting its non-compete law on April 7, 2016, Utah has twice amended the law to address additional restrictions on non-competes in the broadcasting industry. Governor Gary Herbert signed the second of those amended bills on March 22, 2019. The Original Non-Compete Law Utah’s original non-compete law, which we covered in an article dated April 7, 2016, … Continue Reading
Earlier this month, a group of six United States Senators made a joint request for the Government Accountability Office (GAO) to investigate the impact of non-compete agreements on workers and the U.S. economy as a whole. This action suggests that the federal non-compete reform effort is not going away. Recent Legislative Efforts On February 18, 2019, we … Continue Reading
