Bryan Shapiro – Non-Compete & Trade Secrets 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.

August 8, 2022June 22, 2023 by Duane Morris

District of Columbia Walks Back Noncompetition Ban in Favor of Income-Based Threshold

In our Alerts published January 22, 2021, February 17, 2021, and March 17, 2022, we detailed the Washington, D.C., Ban on Non-Compete Agreements Amendment Act of 2020. Among other provisions, had it taken effect, the 2020 Act would have rendered void and unenforceable any agreement prohibiting an employee from working for a competitor following employment and while the employee is still employed by the employer. The ban on so-called in-term restrictive covenants―standard provisions that prevent an employee from simultaneously working for a competitor of his or her employer―would have been the first of its kind.

Read the full Alert on the Duane Morris LLP website.

July 21, 2022June 22, 2023 by Duane Morris

Colorado Creates Income-Based Threshold for Noncompetition and Customer Nonsolicitation Covenants

A new Colorado law effective August 10, 2022, voids noncompetition and customer nonsolicitation covenants with certain employees who work or live in Colorado, depending on their level of compensation. The new law potentially subjects noncompliant employers to significant penalties and voids any provision in violation of the statute.

HB 22-1317, signed into law on June 8, 2022, amends Colorado’s existing noncompetition statute, C.R.S. § 8-2-113, for agreements entered into or renewed on or after August 10, 2022. The new law comes only months after Colorado enacted a criminal statute making violations of the state’s noncompetition statute a Class 2 misdemeanor punishable by 120 days in jail, a fine up to $750 or both.

Read the full Alert on the Duane Morris LLP website.

March 17, 2022June 22, 2023 by Duane Morris

Washington, D.C., Again Postpones Its Ban on Noncompetes

In our Alerts published January 22 and February 17, 2021, we detailed the various provisions of the broad, new Washington, D.C., Ban on Non-Compete Agreements Amendment Act of 2020 (the Act), slated to take effect once the District of Columbia Council funded the law through the appropriations process. Among other provisions, the Act would render void and unenforceable any agreement prohibiting an employee from working for a competitor following employment and while the employee is still employed by the employer. The ban on so-called in-term restrictive covenants―standard provisions that prevent an employee from simultaneously working for a competitor of his or her employer―would be the first of its kind in the country.

Read the full Alert on the Duane Morris LLP website.

January 28, 2022June 22, 2023 by Duane Morris

Colorado Enacts Legislation Authorizing Potential Criminal Liability for Employers that Violate State Noncompetition Statute

A new Colorado law, effective March 1, 2022, will make violations of the state’s noncompetition statute a Class 2 misdemeanor punishable by 120 days in jail, a fine up to $750, or both.

Colorado’s noncompetition statute, C.R.S. § 8-2-113, prohibits the use of “force, threats, or other means of intimidation to prevent any person from engaging in any lawful occupation at any place he sees fit.” Covenants not to compete restricting the right of any person to receive compensation for performance of skilled or unskilled labor for any employer are void under the statute unless they satisfy certain exceptions.

Read the full Alert on the Duane Morris LLP website.