News & Analysis as of August 9, 2025

Non-Compete Agreements › Restrictive Covenants › State Legislatures

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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... more +

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 -

As the Great New Jersey Denizen Yogi Berra Observed, “It’s Déjà Vu All Over Again”: Noncompete Clauses Are Under Fire in New...

Foley & Lardner LLP on 8/5/2025

The New Jersey legislature is taking another crack at imposing significant limitations on noncompete agreements. Its first effort in this regard, a 2022 Assembly Bill which proposed mandatory notice periods, the statutory...more

Colorado Clarifies Limits on Noncompetes in Business Sale Arrangements

Shook, Hardy & Bacon L.L.P. on 7/15/2025

By statutory law, Colorado has generally prohibited restrictive agreements except for specific exemptions. More recent legislation provides greater clarity and specificity as it relates to restrictions on noncompetition...more

Texas Amends Restrictive Covenant Laws for Healthcare Providers

Epstein Becker & Green on 7/8/2025

As state legislatures continue to reshape the landscape of restrictive covenants in the wake of federal uncertainty, Texas is one of the latest to amend its existing laws governing non-compete agreements for healthcare...more

The Rules of Washington Noncompetition Agreements May Change Again

Lasher Holzapfel Sperry & Ebberson PLLC on 7/2/2025

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

States Continue to Limit Restrictive Covenants for Health Care Professionals

Littler on 6/30/2025

Following a trend in recent years, state legislatures continue to ban or curtail the use of non-compete provisions and other restrictive covenants in employment agreements with physicians and other healthcare providers. The...more

US Noncompete Landscape Recent Developments and Trends

Cooley LLP on 6/27/2025

Following the Federal Trade Commission’s largely unsuccessful attempt to implement a nationwide ban on most post-employment noncompete agreements last year, states have stepped in to fill the legislative gap. The result has...more

Montana, Indiana, Colorado, Oregon, and Utah Amend Restrictive Covenant Laws for Healthcare Providers

Epstein Becker & Green on 6/18/2025

In the wake of the nationwide injunction last year barring the Federal Trade Commission’s (FTC) attempted Noncompete Ban, states have continued to legislate the scope of enforceable restrictive covenants, especially...more

Oregon Enacts Expansive Corporate Practice of Medicine Bill

McDermott Will & Schulte on 6/12/2025

On June 9, 2025, the Oregon legislature enacted Senate Bill (SB) 951, which prohibits certain ownership of and actions related to professional medical entities and aims to modernize Oregon’s corporate practice of medicine...more

Is Your Business Ready for The CHOICE Act?

Spilman Thomas & Battle, PLLC on 5/29/2025

What is the CHOICE Act? On April 24, 2025, Florida state lawmakers passed the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act or CHOICE Act. The CHOICE Act is a law reforming...more

States Step In To Fill Void Left by FTC Noncompete Rule

BakerHostetler on 5/20/2025

The FTC’s noncompete rule, which proposed to ban nearly all noncompetes, was enjoined by a Texas District Court in August 2024. While the FTC has launched a Joint Labor Task Force focused on “rooting out and prosecuting...more

States Continue to Introduce Legislation Aimed at Restricting Noncompete Agreements

Epstein Becker & Green on 4/29/2025

After the nationwide injunction barring the Federal Trade Commission (FTC) Noncompete ban, we reported that “employers can expect that states will continue to introduce legislation aimed at restricting the use of...more

Texas Joins List of Legislatures Seeking to Ban Noncompete Agreements

Epstein Becker & Green on 4/16/2025

After the nationwide injunction barring the Federal Trade Commission (FTC) Noncompete ban, we reported our anticipation that state legislatures would likely introduce legislation restricting the use of noncompetes....more

New York Legislature Proposes New Bill Banning Non-Compete Agreements

Sheppard Mullin Richter & Hampton LLP on 3/19/2025

The New York Legislature is set to make another attempt to ban non-competes for all but highly compensated individuals. At the end of the 2023 legislative session, the New York Legislature passed a bill that would have banned...more

New York State Proposes Bill That Would Place Restrictions on Noncompetes and Other Restrictive Covenants

Epstein Becker & Green on 1/22/2025

With the Federal Trade Commission’s Noncompete ban essentially dead, state legislatures, as expected, are taking restrictive covenant lawmaking into their own hands....more

Noncompetes Remain Enforceable in Rhode Island Following Governor’s Veto

Epstein Becker & Green on 7/1/2024

On June 26, 2024, Rhode Island Governor Dan McKee vetoed a bill that would have banned nearly all noncompetes and customer non-solicits in the State of Rhode Island....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

New York State Legislature Sends Broad Noncompete Ban to Governor’s Desk

Blank Rome LLP on 6/28/2023

On June 20, 2023, the New York Assembly passed a bill already passed by the Senate banning all post-employment noncompete agreements with workers. The bill is headed to Governor Kathy Hochul’s office for her approval....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

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 Legislature Agrees to Ban Noncompete Agreements

Faegre Drinker Biddle & Reath LLP on 6/22/2023

New York is poised to become the fifth state in the nation to impose a complete ban on employment-related noncompete agreements, joining California, Oklahoma, North Dakota, and most recently, Minnesota. On June 20, 2023,...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

Coming Soon: Major Changes to Colorado’s Non-compete Laws

Brownstein Hyatt Farber Schreck on 5/17/2022

The Colorado Legislature recently approved significant changes to the state’s noncompetition and restrictive covenants statute. The Restrictive Employments Agreement Act (“Act”) (HB 22-1317) is a major overhaul of C.R.S....more

New Nevada Law Further Regulates Restrictive Covenants

Jackson Lewis P.C. on 6/10/2021

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...more

Oregon, Nevada and Illinois Further Limit Restrictive Covenants

Bass, Berry & Sims PLC on 6/9/2021

The legislatures of Oregon, Nevada and Illinois recently placed additional limitations on restrictive covenants, particularly non-competition covenants. Changes to Oregon Restrictive Covenants - Effective as to...more

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