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Multijurisdictional Employers, P2: 2025 State-by-State Updates on Non-Compete/Non-Solicitation Agts
In a departure from the legislative trends in certain states to curtail post-employment restraints, the state of Florida has bucked the tide to take the most employer friendly approach to restrictive covenants. On April 24,...more
As of July 1, 2025, Maryland prohibits or restricts non-compete provisions for nearly all healthcare professionals. The prohibition applies to individuals: (1) required to be licensed under the Maryland Health Occupations...more
While many states recently have enacted laws making it harder for employers to enforce noncompetes, Florida is bucking the trend by enacting some of the strongest noncompete protections in the country. The newly enacted...more
The Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act became law on July 3, 2025, expanding employers’ rights in enforcing non-compete and garden leave agreements with Florida-based...more
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
On June 18, 2025, the Florida legislature presented Governor Ron DeSantis with the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act. It is expected that Governor DeSantis...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
Florida lawmakers recently passed the Florida Contracts Honoring Opportunity, Investment, Confidentiality and Economic Growth (CHOICE) Act (the “Act”), which would create a presumption that covered non-compete and garden...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
Texas has enacted Senate Bill 1318 (SB 1318), which brings major changes to the state’s noncompete for healthcare professionals. Effective September 1, 2025, the new law extends protections that once applied only to...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
A pair of bills were introduced in the New Jersey Legislature seeking to ban or significantly restrict employers’ ability to enter into and enforce noncompete agreements. The proposed legislation (S4385 and S4386) seeks to...more
The New Jersey Legislature is considering a bill (S4385/A5708) banning non-compete clauses, with limited exceptions, and prohibiting no-poach agreements between employers and workers. Appearing to take a page from the now...more
Effective July 1, 2025, the second phase of Maryland’s restrictions on non-compete agreements and conflict of interest provisions for healthcare professionals will go into effect, targeting employers who provide direct...more
Virginia is the most recent state to tighten restrictions on employment non-compete agreements. Governor Glenn Youngkin signed a bill expanding the definition of low-wage employees under the state’s existing prohibition on...more
The Virginia Legislature enacted amendments to its existing Non-Compete Act (the “Act”) on March 24. The amendments will broaden the categories of employees who cannot be subject to non-competition covenants by including any...more
On March 24, 2025, Virginia Governor Glenn Younkin signed into law S.B. 1218, which amended Virginia’s non-compete law to expand the definition of “low-wage employees” with whom employers may not enter into non-competition...more
Virginia has expanded its limited prohibitions on the use of noncompetition agreements for “low-wage employees,” which have been in place since 2020. On March 24, 2025, Virginia Gov. Glenn Youngkin signed Virginia Senate...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
The Northern District of Texas’s nationwide ban on the Federal Trade Commission’s noncompete rule isn’t a complete bar to government enforcement. The rule sought to curb unfair methods of competition and would have voided...more
On April 23, the Federal Trade Commission (FTC) voted to adopt a monumental final rule prohibiting employers from entering into non-competes against all workers within the jurisdiction of the FTC – a move that is poised to...more
Yesterday, the Federal Trade Commission (“FTC”) announced its long-anticipated final rule finding that the vast majority of non-compete agreements constitute unfair methods of competition, and are thus invalid. An estimated...more
On April 23, 2024, the Federal Trade Commission (FTC) announced it had approved its final rule that would effectively ban workplace non-compete agreements, with limited exceptions (the “Final Rule”). The effective date of the...more
On March 1, 2022, Colorado added criminal penalties to its existing non-compete law. This is part of a wider trend to limit the reach of non-compete agreements. While it is unclear how expansive enforcement will be, employers...more
In January 2021, Washington, D.C. Mayor Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020, which will, once effective, constitute one of the broadest statutory bans of non-compete agreements in the...more