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Effective July 1, 2025, Florida's Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act (the CHOICE Act) now allows for non-competition periods of up to four (4) years after the end of...more
The vast body of restrictive covenant law continues to develop across the country as states navigate refining their approach to non-compete and non-solicitation agreements with some expansions along with the general trend of...more
The enforceability of noncompetition agreements is a widely debated topic in and outside of the legal world. In just the last year, it has been a repeat topic on the floor of the Washington state legislature. States across...more
The proposed Florida Contracts Honoring Opportunity, Investment, Confidentiality and Economic Growth (CHOICE) Act marks a substantial development in Florida’s treatment of noncompete agreements....more
On April 24, 2025, the Florida legislature passed the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth, or CHOICE, Act. The CHOICE Act goes into effect on July 1, 2025. The CHOICE...more
Pending expected approval from Gov. Ron DeSantis, Florida’s Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act is expected to go into effect on July 1, 2025. Once in place, the...more
Over the past several years, EmployNews has chronicled multiple legislative, regulatory, and judicial assaults on the use of noncompetition agreements with employees. These attacks have weakened or eliminated employers'...more
Wyoming just banned most non-compete agreements (Wyo. Stat. § 1-23-108): starting July 1, 2025, most agreements that restrict workers from working in competitive jobs will be void, absent some exceptions for: High-Level...more
With the Federal Trade Commission’s proposed nationwide ban on noncompetes seemingly dead, states continue to march forward with their own regulation of such agreements. Washington’s current law bans noncompetes for employees...more
Responding to a Non-Compete Violation - When an employer discovers a potential non-compete violation, they generally react within 1-4 weeks, though this can be shorter if the violation poses an immediate competitive threat....more
In a recent en banc decision, Delaware’s Supreme Court upheld a key tool available to employers to enforce forfeiture-for-competition provisions against former employees. Delaware’s Chancery Court has shown an increasing...more
A recent decision by the U.S. Court of Appeals for the Seventh Circuit allowed an employer to enforce a “forfeiture-for-competition” against a former plant manager. The Court explained that, under Delaware law, forfeiture-for...more
Last month, in DraftKings Inc. v. Hermalyn, the First Circuit Court of Appeals issued a decision concerning the application of California’s non-compete ban to agreements formed outside the state. Broadly, the decision...more
The General Counsel of the National Labor Relations Board ("NLRB") issued Memorandum GC 25-01 on October 7, 2024, which establishes her intent to "urge the Board not only to find certain non-compete provisions unlawful, but...more
On October 7, 2024, the General Counsel for the National Labor Relations Board (“NLRB”) issued a memorandum offering her perspective on damages employers may face when enforcing allegedly unlawful non-compete agreements, and...more
On May 7, 2024, the Federal Trade Commission (FTC) issued a Final Rule that renders invalid non-compete clauses in standard employment agreements. 16 C.F.R. § 910. Although some limited exceptions apply, this new regulation...more
The U.S. District Court for the Eastern District of Texas has issued an aggressive scheduling order that “should allow prompt resolution of” one of the initial challenges to the FTC’s noncompete ban “with sufficient time,...more
With the potential for a federal ban on the horizon and increasing restrictions on noncompete agreements at the state level, employers are becoming increasingly hesitant to look to noncompete provisions for protection,...more
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
Many people are contemplating what to give their Valentine in a couple of weeks. However, California employers that employed California persons under an agreement with a noncompete clause “no matter how narrowly...more
The US is not the only country currently debating a reform to the law on non-competes (see here in relation to federal law and New York). Notably, the UK Government has announced legislation that would limit the duration of...more
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
Historically, Georgia courts have declined to apply another state’s law to determine whether to enforce restrictive covenants against a Georgia employee, regardless of whether the agreement stated that another state’s law...more
The National Labor Relations Board (NLRB) has found its first target under recent guidance issued in a memo from its General Counsel claiming that noncompete agreements may violate the National Labor Relations Act (NLRA)....more