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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
On January 3, 2025, the Washington State Legislature introduced HB1155 (the “Bill”) that, if passed, would broaden the definition of a “noncompetition covenant” and prohibit all employer-employee noncompete agreements....more
It seems like a simple question: Is the covenant not to compete in my employment agreement enforceable? The answer is much more complex and uncertain than you might think....more
In recent months, noncompete agreements have become a hotly contested topic in the realm of employment law. It seems that new precedent emerges on this topic week after week, leaving employers and deal-makers alike concerned...more
On January 1, 2022, amendments to the Illinois Freedom to Work Act, 820 ILCS 90/1, et seq. (the “Act”), became effective, trumpeting reforms and limitations on an employer’s ability to enter into covenants not to compete and...more
Q: Is New York City considering a total ban on noncompete agreements? A: Yes — a total ban on noncompete agreements would be the result of one of the three noncompete bills currently pending in the New York City Council,...more
Following the recent failed attempt at broadly banning non-compete agreements in New York statewide (discussed here), three new bills were just introduced to do the same, this time in New York City. The most comprehensive,...more
Last summer, the New York State legislature made waves when it passed a bill that effectively would have banned noncompete agreements. New York’s Governor vetoed that bill in late December 2023. This year, however, it is...more
Seyfarth Synopsis: Efforts to prohibit non-compete agreements in New York State are back to square one following Governor Hochul’s veto of an outright ban in late December 2023....more
Despite California’s longstanding policies, statutes, and robust case law in the non-compete arena, the Legislature recently enacted two new provisions seeking to provide further protections against non-compete agreements in...more
As we predicted when the New York legislature passed a bill that would ban noncompetes in the state without even an exception for the sale of a business, Governor Kathy Hochul has said that she wants changes to the bill –...more
We are in the final stretch of the California legislature’s first year of a two-year session. One bill that sped through the legislative process—without any registered opposition—is Senate Bill 699, which extends the state’s...more
Summary - On June 20, the New York State Legislature passed a bill prohibiting noncompetes. The bill currently awaits Governor Hochul’s signature. If signed into law, it will take effect just 30 days later, but will only...more
Seyfarth Synopsis: The New York State Assembly has joined the State Senate in passing legislation to prohibit non-compete clauses in employment contracts. The bill now heads to the Governor and, if signed into law, would void...more
On June 20, 2023, the New York Senate sent bill S.3100A/A.1278B to the desk of Governor Kathy Hochul to prohibit non-competition agreements broadly throughout New York State. This bill, if signed into law, will take effect...more
Executive Summary: This month both the New York State (NYS) Senate and the NYS Assembly passed identical bills that effectively ban all noncompete agreements in the state of New York. If signed by Governor Kathy Hochul, the...more
The New York State Legislature passed a bill on June 20, 2023, that seeks to prohibit employers from entering into non-compete agreements with their employees (the “Bill”). If signed by Governor Hochul, the Bill will be a sea...more
Non-compete agreements may soon be unlawful in New York. The New York State Assembly passed A1278B on June 20, and the New York State Senate previously passed its counterpart bill, Senate Bill 3100A, earlier this month. If...more
New York State may soon join the growing list of jurisdictions restricting or banning noncompete agreements. On June 7, 2023 the New York State Senate passed S 3100A (the “Bill”), which would prohibit employers from seeking,...more
On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed rule that, if enacted, would amount to a near-total ban on the use of non-compete agreements nationwide. If enacted as written, the FTC’s proposed...more
Currently pending in the New Jersey Legislature is a bill that would upend decades of New Jersey jurisprudence governing restrictive covenants in employment contracts and severance agreements, and impose an array of new...more
Nelson Mullins is continuously monitoring trends and state law changes regarding restrictive covenants in employment agreements. Several states have recently enacted or modified legislation that may significantly restrict an...more
Last week, the New Jersey Assembly’s Labor Committee passed bill A3715, designed to sharply limit the available provisions, use, and enforceability of restrictive covenants in employment contracts by New Jersey employers....more
In early May 2022, the New Jersey Legislature introduced a comprehensive bill seeking to regulate and limit the use of non-compete agreements in a multitude of ways. Importantly, if enacted Bill A3715 would require employers...more
The 2022 legislative session of Colorado’s General Assembly closed with a bang. Among a number of new bills affecting employers, perhaps none was as closely watched as HB 22-1317, which provides substantial changes to...more