News & Analysis as of June 2, 2025

State Labor Laws

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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 -

Non-Compete Ban for Maryland Healthcare Professionals Set to Take Effect July 1, 2025

Offit Kurman on 5/29/2025

Effective July 1, 2025, the second phase of Maryland’s restrictions on non-compete agreements and conflict of interest provisions for healthcare professionals will go into effect, targeting employers who provide direct...more

Is Your Business Ready for The CHOICE Act?

Spilman Thomas & Battle, PLLC on 5/29/2025

What is the CHOICE Act? On April 24, 2025, Florida state lawmakers passed the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act or CHOICE Act. The CHOICE Act is a law reforming...more

Noncompete News: New Jersey Introduces New Bill to Kill Noncompete Agreements

FordHarrison on 5/27/2025

Executive Summary: Following last year’s unsuccessful attempt to ban noncompete agreements, New Jersey’s legislature introduced a new bill on May 19, 2025, to prohibit the use of noncompete clauses....more

Ohio Legislature Introduces Bill to Ban Non-Competes in Employment Agreements

Ice Miller on 5/23/2025

Ohio Senate Bill 11 (SB11)—supported by members from both sides of the political spectrum—has been introduced in the Ohio Legislature, aiming to prohibit employment agreements that restrict employees from competing with their...more

Florida Non-Compete Law Scheduled for a Face-Lift

Saul Ewing LLP on 5/20/2025

On April 24, 2025, the Florida House and Senate passed legislation introducing large-scale changes to Florida’s non-compete landscape. The Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic...more

In the Fight Against Noncompete Agreements, Florida Chooses Employers

Bradley Arant Boult Cummings LLP on 5/16/2025

The Florida Legislature passed the “Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act” last month to provide employers two new outlets for protecting confidential information and...more

Kansas Enacts New Employer-Friendly Law Clarifying Enforceability of Non-Solicitation Agreements

Vorys, Sater, Seymour and Pease LLP on 5/15/2025

Kansas has recently joined the expanding list of jurisdictions to pass or introduce legislation related to restrictive covenants. Except this time, the legislation substantially modifies the state’s approach to restrictive...more

Changes to Virginia’s Noncompete Statute

Troutman Pepper Locke on 5/13/2025

Effective July 1, new legislation will take effect in Virginia imposing further restrictions on the use of covenants not to compete and prohibiting their use for employees who are eligible to receive overtime pay under the...more

Virginia to ban non-competes for non-exempt employees, effective July 1, 2025

Hogan Lovells on 5/13/2025

On March 24, 2025, Virginia Governor Glenn Youngkin signed Senate Bill 1218 into law, expanding the Commonwealth’s restrictions on non-competition agreements. Effective July 1, 2025, Virginia employers will be prohibited from...more

Florida Poised To Enact Employer-Friendly Noncompete and Garden Leave Law

Lowenstein Sandler LLP on 5/12/2025

A bill recently passed by the Florida House and Senate and poised to become law effective July 1, 2025, will substantially change the noncompete landscape for employers doing business in Florida. If Gov. Ron DeSantis signs...more

Florida Legislature Passes Restrictive Covenants Bill

Ogletree, Deakins, Nash, Smoak & Stewart,... on 5/5/2025

On April 24, 2025, the Florida Legislature passed legislation to create two new forms of noncompetes for employers and businesses: a covered garden leave provision and a provision limiting noncompetes to a specific geographic...more

New Virginia Law Prohibits Noncompete Agreements With Non-Exempt Employees

Parker Poe Adams & Bernstein LLP on 5/2/2025

Virginia Governor Glenn Youngkin recently signed legislation expanding the state’s limitations on the use of noncompetition agreements in employment. Currently, Virginia prohibits employers from entering into noncompetes with...more

Class Action Alert: “Conflict of Interest” Policies Are the Newest Trend for Class Action Lawsuits Against Employers in Washington...

Buchalter on 5/2/2025

Following a recent Washington Supreme Court decision, plaintiffs’ attorneys in Washington are targeting a new type of class action claim against employers: alleged violations of Washington’s noncompetition statute based on...more

Kansas Passes Pro-Employer Restrictive Covenant Legislation

Proskauer - Law and the Workplace on 5/2/2025

On April 9, 2025, Kansas Governor Laura Kelley signed into law Senate Bill No. 241 (the “Bill”), which amends the Kansas Restraint of Trade Act (the “Act”) to (a) create presumptions of enforceability for non-solicitation...more

States Continue to Introduce Legislation Aimed at Restricting Noncompete Agreements

Epstein Becker & Green on 4/29/2025

After the nationwide injunction barring the Federal Trade Commission (FTC) Noncompete ban, we reported that “employers can expect that states will continue to introduce legislation aimed at restricting the use of...more

New Amendment Further Restricts Non-Competes in Virginia

Williams Mullen on 4/29/2025

Beginning on July 1, 2025, Virginia’s existing non-compete statute, Va. Code § 40.1-28.7:8, will be expanded to prohibit post-employment non-compete agreements and certain non-solicitation covenants with any non-exempt...more

Expanded Definition of ‘Low-Wage’ Employees in Virginia Non-Compete Ban: Employers Need to Act Now

Jackson Lewis P.C. on 4/28/2025

Virginia is the most recent state to tighten restrictions on employment non-compete agreements. Governor Glenn Youngkin signed a bill expanding the definition of low-wage employees under the state’s existing prohibition on...more

Virginia and Wyoming Further Restrict Use of Non-Competition Agreements

Vorys, Sater, Seymour and Pease LLP on 4/22/2025

As the future of the Federal Trade Commission’s stalled federal ban on non-competition agreements remains uncertain (FTC Non-compete Ban Blocked – For Good, For Now), states continue to enact laws curtailing employers’...more

New York State Proposes Bill to Ban Noncompetes Except for Highly Compensated Workers and in Sales of Businesses

Epstein Becker & Green on 4/17/2025

New York State Senator Sean Ryan recently introduced Senate Bill 4641 (the “Bill”) that proposes to ban noncompete agreements for most New York employees....more

New Illinois Labor and Employment-Related Laws Cover E-Verify, ‘Captive Audience Meetings,’ Noncompetition, AI, and More

Ogletree, Deakins, Nash, Smoak & Stewart,... on 4/15/2025

The Illinois General Assembly had a busy year in 2024 drafting new legislation that was signed by Governor J.B. Pritzker and took effect on January 1, 2025. The following article summarizes important legal advancements in...more

The Sunflower State (Kansas) Passes Employer-Friendly Restrictive Covenant Legislation

Epstein Becker & Green on 4/14/2025

Consistent with our previous reporting that states would continue to address noncompete issues even after the apparent end of the FTC Noncompete Rule, Kansas has joined the growing list of jurisdictions to pass or introduce...more

Virginia Extends Ban on Non-Competes

Woods Rogers on 4/11/2025

Virginia lawmakers extended the state’s ban on non-compete agreements to cover all non-exempt employees. This new law affects how employers can enter non-compete agreements with even more of their employees and goes into...more

Virginia Expands Law on Non-Compete Covenants

Nelson Mullins Riley & Scarborough LLP on 4/10/2025

The Virginia Legislature enacted amendments to its existing Non-Compete Act (the “Act”) on March 24. The amendments will broaden the categories of employees who cannot be subject to non-competition covenants by including any...more

Virginia Strengthens Ban on Non-Competes for “Low-Wage Employees”

Proskauer - Law and the Workplace on 4/8/2025

On March 24, 2025, Virginia Governor Glenn Younkin signed into law S.B. 1218, which amended Virginia’s non-compete law to expand the definition of “low-wage employees” with whom employers may not enter into non-competition...more

Virginia Expands Noncompete Ban for Low-Wage Employees

Paul Hastings LLP on 4/1/2025

Virginia has expanded its limited prohibitions on the use of noncompetition agreements for “low-wage employees,” which have been in place since 2020. On March 24, 2025, Virginia Gov. Glenn Youngkin signed Virginia Senate...more

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