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Non-Solicitation Agreements Employer Liability Issues New Legislation

Jenner & Block

Client Alert: Employers Beware: Employees Are Seeking Damages for Unenforceable Noncompetes

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We have seen a rise in employees going on the offensive and suing their former employers for damages for not informing them that their noncompete is invalid under the applicable state law or for exaggerating the scope of a...more

Littler

Pennsylvania Enacts Law Banning Certain Non-Compete Agreements with Healthcare Providers

Littler on

On July 23, 2024, Pennsylvania Governor Josh Shapiro signed the Fair Contracting for Health Care Practitioners Act (the “Act”), which bans certain noncompete covenants, including patient nonsolicitation provisions, between an...more

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

Ogletree, Deakins, Nash, Smoak & Stewart,...

Washington State Updates and Clarifies Noncompetition and Nonsolicitation Law

The 2024 Washington State Legislature passed Substitute Senate Bill (S.S.B.) 5935 in February 2024, and Governor Jay Inslee signed the bill into law on March 13, 2024, updating and clarifying Washington law regarding...more

Parker Poe Adams & Bernstein LLP

New California Law Requires Notice to Employees About Void Noncompetes

Most employers know that California has for decades prevented enforcement of employee non-competition and customer non-solicitation agreements. Some companies with California operations modify their agreements with employees...more

Seyfarth Shaw LLP

Georgia Maps Out New Requirement for Employee Non-Solicits

Seyfarth Shaw LLP on

On May 11, 2011, Georgia passed the Restrictive Covenants Act, which made enforcing employee restrictive covenants far easier than it was under Georgia common law. In an odd twist, a law that Georgia intended to make it...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 & Schulte

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

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 Murtha PLLC

New York State Moves to Ban Employee Non-Compete Agreements

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

Latham & Watkins LLP

New Minnesota Law Bans Most Post-Employment Non-Competes: 6 Key Takeaways

Latham & Watkins LLP on

Minnesota has enacted one of the strictest state non-compete laws in the US, banning almost all post-termination non-competes between employers and their employees and between employers and certain independent contractors...more

Foley Hoag LLP

FTC Proposes Rule Eliminating Non-Compete Agreements Nationwide

Foley Hoag LLP on

On January 5, 2023, the Federal Trade Commission (“FTC”) proposed a new rule banning non-compete agreements. The 218-page notice of proposed rulemaking details the FTC’s position on the value (or lack thereof) of...more

Bradley Arant Boult Cummings LLP

Noncompete Agreements Under Continued Attack

Employment attorneys and employers are well aware that noncompete and nonsolicitation agreements have been under continued scrutiny by states across the country. While the laws vary from state to state, generally, restrictive...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

Womble Bond Dickinson

Colorado Bill Restricts Non-Compete Agreements and Creates Substantial Penalties for Violations

Womble Bond Dickinson on

A Colorado law will take effect in August 2022 that substantially changes what is permissible for non-compete and non-solicitation employment agreements. Currently, Colorado allows employers to require non-compete...more

Brownstein Hyatt Farber Schreck

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

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

Fisher Phillips

Colorado Set to Severely Limit Non-Competes and Other Restrictive Covenants: A 5-Step Action Plan for Employers

Fisher Phillips on

Colorado lawmakers just passed a law that will bring dramatic change to the non-compete landscape by significantly limiting the circumstances under which restrictive covenants may be used – virtually ending the practice of...more

Perkins Coie

Major Changes to Illinois’ Non-Compete and Non-Solicit Laws: Company Agreements Likely Require Revision

Perkins Coie on

As of January 1, 2022, Illinois employers are more limited in their ability to bind employees to non-competition and non-solicitation agreements. These changes stem from a recent amendment to the Illinois Freedom to Work Act,...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

Akerman LLP - HR Defense

Illinois Imposes New Limits on Non-Competes Effective January 1

Illinois employers will be far more restricted in their ability to bind employees to non-competition and non-solicitation agreements as result of an amendment to the Illinois law governing such agreements. The law amends the...more

FordHarrison

Non-Compete News: Illinois Legislature Changes the Game on Non-Compete Agreements

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It’s no secret that Illinois courts have historically been less than friendly to restrictive covenants, and non-compete agreements in particular. On August 13, 2021, Governor JB Pritzker signed into law Public Act 102-0358,...more

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