June 2023 – Trade Secrets & Non-Compete Law

June 13, 2023June 22, 2023 by Duane Morris

Minnesota Joins the Ranks of States Banning Employee Noncompetition Covenants

Minnesota is now the fourth state in the U.S. to ban noncompetition covenants in agreements between employers and employees, under a bill signed into law by Governor Tim Walz on May 24, 2023. Similar statutes already exist in California, Oklahoma and North Dakota.

When Does the Law Take Effect?

The law is effective immediately, but only applies to contracts and amendments entered into on or after July 1, 2023―i.e., the law does not apply to covenants not to compete entered into prior to July 1, 2023.

Read the full Alert on the Duane Morris LLP website.

June 2, 2023June 22, 2023 by Duane Morris

NLRB Effort the Latest Attempt to Curtail Enforcement of Non-Compete Agreements

On May 30, 2023, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memorandum asserting that the “proffer, maintenance, and enforcement” of most non-compete provisions in employment contracts violate the National Labor Relations Act (NLRA). This memorandum follows on the heels of other recent efforts to curtail non-compete provisions, including the Federal Trade Commission’s proposed rule that—if enacted and thereafter successful in promised court challenges—would retroactively ban nearly all such provisions in employment agreements; a bipartisan Senate bill that would ban most non-compete provisions going forward; and a slew of recent state legislation making non-compete provisions more difficult for employers to enforce.

Read the full Alert on the Duane Morris LLP website.