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On April 23, 2024, the Federal Trade Commission (FTC) announced a final rule that attempts to eliminate almost all post-employment non-compete covenants. The validity of the rule is currently being litigated and the results...more
Recent federal and state regulations have restricted employers' use of noncompete agreements, which in part are designed to protect trade secrets. The U.S. Federal Trade Commission's final rule, which broadly prohibits the...more
As we recently reported, the Federal Trade Commission (FTC) issued its long-awaited final rule on April 23, 2024, banning virtually all noncompetition agreements between employers and workers. Lawsuits challenging the final...more
On April 25, 2024, Governor Wes Moore signed into law new legislation prohibiting non-compete and conflict-of-interest clauses for certain veterinary and health care professionals in the state of Maryland. The enactment of...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
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
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
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
New California laws intended to strengthen the state’s long-standing ban on non-competition agreements are set to create immediate headaches for employers in the state that have, or plan to, impose non-compete or non-solicit...more
As we reported last month, effective January 1, 2024, non-compete agreements in California are unenforceable regardless of where the contract is signed. This means employees who sign non-competes outside California, then move...more
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
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
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
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
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
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’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 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
This year, California was one of many states to enact legislation restricting noncompetes. California has long had the strictest noncompete law, and employee noncompetes are already void under California Business and...more
On January 1, 2022, the latest amendments to the Illinois Freedom to Work Act (“Act”) became effective. As we previously described, that Act sets forth various requirements governing restrictive covenant agreements in...more
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
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
On June 20, 2023, the New York State Assembly passed A1278B, which amends the state’s labor law to prohibit non-compete agreements (the “Bill”). The Assembly’s passage of the Bill, which comes on the heels of the New York...more