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Non-Compete Agreements › Contract Terms › Employees

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Proskauer - Law and the Workplace

Wyoming Bans Most Non-Compete Agreements

Proskauer - Law and the Workplace on

Wyoming just banned most non-compete agreements (Wyo. Stat. § 1-23-108): starting July 1, 2025, most agreements that restrict workers from working in competitive jobs will be void, absent some exceptions for: High-Level...more

Miller Nash LLP

Washington State Proposes Full Ban on Non-Competes

Miller Nash LLP on

With the Federal Trade Commission’s proposed nationwide ban on noncompetes seemingly dead, states continue to march forward with their own regulation of such agreements. Washington’s current law bans noncompetes for employees...more

Hendershot Cowart P.C.

Timeline: What Happens After Breaking a Non-Compete Agreement in Texas

Hendershot Cowart P.C. on

Responding to a Non-Compete Violation - When an employer discovers a potential non-compete violation, they generally react within 1-4 weeks, though this can be shorter if the violation poses an immediate competitive threat....more

Ballard Spahr LLP

Delaware Supreme Court Broadens Utility of Noncompete Enforcement Tool

Ballard Spahr LLP on

In a recent en banc decision, Delaware’s Supreme Court upheld a key tool available to employers to enforce forfeiture-for-competition provisions against former employees. Delaware’s Chancery Court has shown an increasing...more

Proskauer - Trade Secrets

Seventh Circuit Decision Highlights Distinction Between Traditional Non-Compete and Forfeiture-for-Competition

Proskauer - Trade Secrets on

A recent decision by the U.S. Court of Appeals for the Seventh Circuit allowed an employer to enforce a “forfeiture-for-competition” against a former plant manager. The Court explained that, under Delaware law, forfeiture-for...more

Saul Ewing LLP

First Circuit Says Massachusetts Non-Compete Agreement Enforceable in California Despite State’s Ban

Saul Ewing LLP on

Last month, in DraftKings Inc. v. Hermalyn, the First Circuit Court of Appeals issued a decision concerning the application of California’s non-compete ban to agreements formed outside the state. Broadly, the decision...more

Hinshaw & Culbertson - Employment Law...

Impact for Employers: The NLRB General Counsel Doubles Down on Restrictive Covenants and Stay-or-Pay Provisions

Hinshaw & Culbertson - Employment Law... on

The General Counsel of the National Labor Relations Board ("NLRB") issued Memorandum GC 25-01 on October 7, 2024, which establishes her intent to "urge the Board not only to find certain non-compete provisions unlawful, but...more

Brooks Pierce

NLRB General Counsel Doubles-Down on Non-Compete Agreement—and Takes Aim at “Stay-or-Pay” Provisions

Brooks Pierce on

On October 7, 2024, the General Counsel for the National Labor Relations Board (“NLRB”) issued a memorandum offering her perspective on damages employers may face when enforcing allegedly unlawful non-compete agreements, and...more

Sterne, Kessler, Goldstein & Fox P.L.L.C.

FTC Issues Final Rule Banning (Almost All) Non-Compete Agreements

Sterne, Kessler, Goldstein & Fox P.L.L.C. on

On May 7, 2024, the Federal Trade Commission (FTC) issued a Final Rule that renders invalid non-compete clauses in standard employment agreements. 16 C.F.R. § 910. Although some limited exceptions apply, this new regulation...more

Carlton Fields

Court Direction on FTC’s Noncompete Ban Expected This Summer

Carlton Fields on

The U.S. District Court for the Eastern District of Texas has issued an aggressive scheduling order that “should allow prompt resolution of” one of the initial challenges to the FTC’s noncompete ban “with sufficient time,...more

Troutman Pepper Locke

Water Cooler Talk: Insights on Noncompetes From ‘The Office'

Troutman Pepper Locke on

With the potential for a federal ban on the horizon and increasing restrictions on noncompete agreements at the state level, employers are becoming increasingly hesitant to look to noncompete provisions for protection,...more

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

CDF Labor Law LLP

Flowers, Chocolates, or Notice of Noncompete Agreement?

CDF Labor Law LLP on

Many people are contemplating what to give their Valentine in a couple of weeks.   However, California employers that employed California persons under an agreement with a noncompete clause “no matter how narrowly...more

Littler

Global Non-Compete Reform – At a Glance Tracker: January 2024

Littler on

The US is not the only country currently debating a reform to the law on non-competes (see here in relation to federal law and New York). Notably, the UK Government has announced legislation that would limit the duration of...more

Seyfarth Shaw LLP

Georgia Signals Greater Leeway in Revising Overbroad Non-Competes

Seyfarth Shaw LLP on

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

FordHarrison

Noncompete News: The More Things Change, the More They Remain the Same: Georgia Supreme Court Addresses Choice of Law Provisions...

FordHarrison on

Historically, Georgia courts have declined to apply another state’s law to determine whether to enforce restrictive covenants against a Georgia employee, regardless of whether the agreement stated that another state’s law...more

Epstein Becker & Green

An “Overbroad” Noncompete – the NLRB Has Found Its First Target

Epstein Becker & Green on

The National Labor Relations Board (NLRB) has found its first target under recent guidance issued in a memo from its General Counsel claiming that noncompete agreements may violate the National Labor Relations Act (NLRA)....more

Epstein Becker & Green

NLRB Finds Its First Noncompete Target—and Its Charges Go Well Beyond an “Overbroad” Noncompete

Epstein Becker & Green on

The National Labor Relations Board (NLRB) has found its first target under recent guidance issued in a memo from its General Counsel claiming that noncompete agreements may violate the National Labor Relations Act (NLRA)....more

Society of Corporate Compliance and Ethics...

Federal Trade Commission proposes a noncompete ban: Five things to know

Society of Corporate Compliance and Ethics... on

By now, most compliance professionals are aware of the Federal Trade Commission (FTC) press release from January 5, which announced its proposed rule to ban noncompete clauses. The FTC proposed adding a new subchapter J,...more

Schwabe, Williamson & Wyatt PC

FTC Proposes Regulations Barring Non-Compete Agreements

Schwabe, Williamson & Wyatt PC on

On July 9, 2021, President Biden signed an Executive Order requesting that agencies, including the Federal Trade Commission (FTC), issue rules banning employers from entering non-compete agreements with employees. Following...more

Pullman & Comley - Labor, Employment and...

How to Effectively Utilize Noncompete Agreements in a Tight Labor Market

Pullman & Comley - Labor, Employment and... on

As most employers know, “human capital” is currently a very precious commodity and employers are using legal tactics to retain their star performers. One tool employers often use to try to retain high-value employees is a...more

Nelson Mullins Riley & Scarborough LLP

New Law Changes Non-Compete Landscape for D.C. Employers

Nelson Mullins Riley & Scarborough LLP on

The long-awaited Washington, D.C. non-compete and anti-moonlighting law finally went into effect on Oct. 1, 2022. At the end of 2020, the Washington, D.C. Council passed the Ban on Non-Compete Agreements Amendment Act of...more

Polsinelli

District of Columbia Relaxes its Non-Compete Ban to Allow Restrictive Covenants for Certain Employees

Polsinelli on

The District of Columbia Council passed the Non-Compete Clarification Act of 2022 (“Act”) in late July 2022, setting standards for how and when employers can use and enforce covenants not to compete. The Act notably clarifies...more

Sheppard Mullin Richter & Hampton LLP

New Year, New Rules: The District of Columbia’s New Ban on Non-Compete Agreements

Sheppard Mullin Richter & Hampton LLP on

On January 11, 2021, D.C. Mayor Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”), which, once effective, will be one of the broadest bans on non-compete agreements in the country. ...more

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