Restrictive Covenant and Trade Secret Year-End Review

Benesch
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2021 was an active year for trade secret and restrictive covenant law. 28 states introduced a total of 68 restrictive covenant bills, the United States Senate re-examined two prior restrictive covenant bills, and President Joe Biden asked the Federal Trade Commission (“FTC”) to examine restrictive covenants in order to determine if certain covenants, such as non-competition agreements, can be eliminated from the legal landscape. As with most years, however, only a few of these bills and activities actually resulted in meaningful changes to restrictive covenant and/or trade secret law. Below is a summary of those changes, and a few items/issues companies should be aware of as we head into 2022.

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