News & Analysis as of May 4, 2025

State Labor Laws

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Hiring & Firing refers to the process of recruiting, interviewing and offering employment and the process of evaluating performance and dismissing employees. Hiring & Firing is a highly regulated area and can create tremendous liability for employers who fail to properly adhere to acceptable employment practices. Some of the potential pitfalls in this area stem from discriminatory hiring practices, improper performance evaluations, and retaliatory firings. less -

Did the Punishment Fit the Claim? Employer Hit With $25,000 in Punitive Damages for Making Statutory Entitlements Subject to a...

Stikeman Elliott LLP on 1/21/2025

In its recent decision, Thompson v Revolution Resource Recovery Inc.2025 BCSC 8 (“Thompson”), the Supreme Court of British Columbia (the “Court”) made a $25,000 punitive damages award against an employer for attempting to...more

Continued Employment May Constitute Sufficient Consideration for Noncompete Agreements in Connecticut, but Uncertainty Remains

Epstein Becker & Green on 9/4/2024

The Connecticut Supreme Court recently held that continued employment may constitute sufficient consideration for noncompete agreements under Connecticut law, but left unclear the parameters of that holding....more

Unraveling the Concept of Garden Leave: Insights From Silicon Valley — Hiring to Firing Podcast

Troutman Pepper Locke on 4/16/2024

In this episode of the Hiring to Firing Podcast, Partners Tracey Diamond and Evan Gibbs, along with Dan Sieck, a partner in the firm's Corporate practice group, discuss the hit TV show Silicon Valley and the concept of garden...more

State of Confusion: The Complex Present and Uncertain Future of Employee Non-Compete Agreements

Wyrick Robbins Yates & Ponton LLP on 4/11/2024

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

Amendments To Washington State’s Noncompete Statute Go Into Effect June 6, 2024

Seyfarth Shaw LLP on 4/3/2024

Effective January 1, 2020, Washington enacted a noncompete statute which, among other things, required employers to satisfy notice obligations and compensation thresholds to use noncompete agreements with employees and...more

Noncompetes Remain Enforceable in Maine Following Governor’s Veto That Recognizes the Importance of Noncompetes by Employers

Epstein Becker & Green on 4/1/2024

On March 29, 2024, Maine Governor Janet T. Mills vetoed a bill that would have banned all employee noncompete agreements in the State of Maine. Both chambers of the Maine legislature passed L.D. 1496, An Act to Prohibit...more

Washington State Updates and Clarifies Noncompetition and Nonsolicitation Law

Ogletree, Deakins, Nash, Smoak & Stewart,... on 3/29/2024

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

Could the City Council of New York City Ban Noncompetes?

Epstein Becker & Green on 3/7/2024

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

California Extends Prohibition on Noncompete Agreements

Wilson Sonsini Goodrich & Rosati on 2/8/2024

California law famously bans employee noncompetition agreements, under a statute enacted in 1872. As of January 1, 2024, new amendments to this age-old statute provide clarity about what is—and is not—enforceable....more

This Year Some Employees Will Be Receiving More Than A Valentine's Day Card

Allen Matkins on 2/7/2024

Last year, the California legislature enacted AB 1075 (Bauer-Kahan) which declares it to be unlawful "to include a noncompete clause in an employment contract, or to require an employee to enter a noncompete agreement, that...more

New Year Brings Extension of California’s Ban on Non-Competes

Nelson Mullins Riley & Scarborough LLP on 1/17/2024

On Sept. 1, 2023, California enacted a new law (SB 699, to be codified at Cal. Bus. & Prof. Code sec. 16600.5) reiterating its non-compete ban contained in Section 16600 that is effective Jan. 1, 2024. New Section...more

New Year, New Severance and Settlement Agreement Rules for New York

Polsinelli on 1/12/2024

With the New Year in full swing, it is important for New York employers to be aware of recent changes to New York’s statutes relating to severance agreements. On November 17, 2023, New York enacted S4516, which provides...more

A Holiday Miracle for New York Employers and Dealmakers!

Epstein Becker & Green on 12/27/2023

2023 started off with a bang, and it is certainly not ending with a whimper. On January 4, 2023, the Federal Trade Commission (FTC) announced the settlement of two enforcement actions against employers arising out of their...more

New York Legislature Considers Revised Non-Compete Ban

Seyfarth Shaw LLP on 12/27/2023

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

Georgia Signals Greater Leeway in Revising Overbroad Non-Competes

Seyfarth Shaw LLP on 12/13/2023

In a recent decision, the Eleventh Circuit seemed to approve a more forgiving standard for reviewing restrictive covenants. Courts generally have three colors in their markup kit for restrictive covenants. The first—and most...more

New York Governor: “Balance” Is Needed on Noncompete Bill

Epstein Becker & Green on 11/30/2023

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

50 State Desktop Reference - What Businesses Need to Know about Non-Competes and Trade Secrets Law - 2023

Seyfarth Shaw LLP on 11/8/2023

Introduction - As we enter a new era of business landscape dynamics, Seyfarth Shaw is pleased to present the latest edition of our annual cornerstone publication. This comprehensive 50-State Non-Compete Desktop Reference,...more

California Amends Noncompete Law (Again) and Adds a Notice Requirement

Epstein Becker & Green on 10/27/2023

California’s Business and Professions Code (the “Code”) has long been the nation’s strictest law on restrictive covenants, essentially prohibiting employee noncompetition agreements except in limited circumstances....more

California’s Non-Compete Shakeup

Littler on 10/18/2023

California enacted two new bills expanding the scope and consequences of the state’s policies against restrictive covenants. Governor Newsom signed Senate Bill 699 into law on September 1, 2023, and Assembly Bill 1076 into...more

Will California's New Statute Invalidating Non-Compete Agreements Be Subject To Constitutional Challenge?

Allen Matkins on 9/15/2023

Article I, Section 10 of the United States Constitution prohibits a state from passing any law impairing the obligation of contracts. A similar prohibition is found in Article 1, Section 9 of the California Constitution. ...more

Time for Employers to Modify Minnesota Protective Covenant Templates

Sheppard Mullin Richter & Hampton LLP on 8/18/2023

For those employers who have not yet modified their Minnesota employment and non-compete templates, the time is now. Pursuant to MN SF 3035, as of July 1, 2023, Minnesota employers are prohibited from entering into...more

Georgia Court of Appeals: Non-Solicitation-of-Employees Covenant Must Contain Express Geographic Limitation

Littler on 7/11/2023

The Georgia Court of Appeals recently provided important clarification of the requirements for non-recruitment covenants under Georgia’s 2011 Restrictive Covenants Act. In North American Senior Benefits, LLC v. Wimmer, 2023...more

Reminder: Minnesota Non-Compete Ban Takes Effect on Saturday, July 1

Epstein Becker & Green on 6/30/2023

As we previously reported, Minnesota will soon become only the fourth state (along with California, Oklahoma and North Dakota) to ban noncompetes. The state’s new law renders void and unenforceable all covenants not to...more

Minnesota Non-Compete Ban Signed into Law and Effective July 1, 2023

Stinson LLP on 5/31/2023

Minnesota Governor Tim Walz has now officially signed into law a bill including provisions that will prohibit employment noncompetition agreements. MN SF 3035, signed by Governor Walz on May 24, 2023, restricts employers from...more

Non-Compete Ban Poised to Become Law in Minnesota

Winthrop & Weinstine, P.A. on 5/26/2023

Minnesota Governor Tim Walz is poised to sign an omnibus bill recently passed by the Minnesota state legislature, which includes provisions that would broadly ban non-competition agreements throughout Minnesota beginning on...more

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