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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
In what might be the first published case discussing California’s newest anti-non-compete laws, Cal. Bus & Prof. Code § 16600.5(a) & (b), DraftKings successfully obtained a preliminary injunction and defeated the appeal of...more
2023 was a banner year for trade secrets, non-competes, and other restrictive covenants. Employee non-competes continued to garner attention at the federal agency level, drawing commentary and action from the Federal Trade...more
As discussed in a prior alert, newly-enacted California laws governing noncompete agreements require employer action by February 14, 2024. This alert explains the purpose of the new laws, what the notification requirement...more
California has done it again! We reported last month concerning California’s new non-compete law that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements....more
On September 1, 2023, California Governor Gavin Newsom signed legislation that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements. Specifically, the new law...more
For over two decades, California law concluded non-compete agreements are not enforceable in the context of employment, Edwards v. Anderson, 44 Cal.4th 937 (2008) and even created a public policy claim against employers...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
The New York State Legislature recently passed a bill that, if signed by Governor Kathy Hochul, will prohibit businesses from entering into post-employment noncompete agreements with employees, independent contractors, or any...more
Monumental changes to New York law on non-compete agreements appear imminent. On June 7, 2023, the New York State Senate approved two bills concerning non-compete agreements. ...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
New Jersey recently joined a growing number of states that have taken legislative efforts to significantly limit the enforceability of post-employment restrictive covenant agreements – such as non-compete and non-solicitation...more
As we have previously reported, the Colorado Assembly passed sweeping changes to the state’s noncompete law that, among other things, (1) set compensation floors for enforcement of both noncompetes ($101,250) and customer...more
On August 10, 2022, Colorado’s new statute further restricting non-competition and non-solicitation provisions becomes effective. The new law, which passed earlier this year, continues Colorado’s trend toward increased...more
Effective August 10, 2022, Colorado employers will need to comply with significant new limitations on noncompete agreements and other post-termination restrictive covenants. The Colorado legislature passed House Bill 22-1317,...more
On June 8, 2022, Colorado Governor Jared Polis signed Colorado House Bill 22-1317 (the “Bill”), which was passed by the Colorado Legislature on May 10, 2022. Effective 90 days from the end of the legislative session – on...more
In novel and important decision, DePy Synthes Sales v. Howmedica Ostionic’s, Ninth Cir. Case No. 21-55126, on March 14, 2022, the Ninth Circuit Court of Appeals upheld the lower court’s decisions to prevent a former employer...more
Colorado’s legal landscape continues to shift. Through one sentence in a 304-page bill enacted in 2021, SB 21-271 criminalized violations of Colorado’s restrictive-covenant statute, section 8-2-113, C.R.S. Effective March 1,...more
Over the past few years, states across the country have sought to limit or reduce the use of employee non-compete agreements. While some states have imposed outright bans on such agreements, many more have passed laws that...more
Nevada recently joined the ranks of other states that have enacted legislation restricting noncompetition agreements for hourly employees. If you use a non-compete agreement in Nevada for all of your workers – including...more
Employment Law Commentary Blog - Many employers have long used noncompetition agreements, or noncompetes, as an important tool for preventing former employees from unfairly competing against them. Although only a few...more
The 2019 legal landscape of employee mobility continues to evolve, at times drastically. Courts and legislatures are giving increased scrutiny to employers’ claims to protect the confidentiality of their trade secrets and...more
Nationwide there has been continued hostility toward noncompetition agreements for employees. A noncompetition agreement is an agreement entered into by an employee by which the employee (during employment and after) agrees...more
Washington state employers that rely on noncompetition agreements will face a dramatically different legal landscape beginning Jan. 1, 2020, when a new noncompetition law takes effect....more
Finding that “workforce mobility is important to economic growth and development,” Washington just passed a new law that will significantly restrict noncompetition agreements with both employees and independent contractors....more