On June 20, 2023, the New York Assembly approved legislation that would ban noncompetition agreements in employment contracts. The bill, A1278B/S3100A, is expected to be signed by Governor Kathy Hochul, which will make New York the fifth state in the U.S. to ban noncompetition covenants in agreements between employers and employees. Similar statutes already exist in California, Oklahoma, North Dakota and Minnesota.
Read the full Alert on the Duane Morris LLP website.
By Bronwyn L. Roberts
On June 29, 2016, just four months after Massachusetts House Speaker Robert A. DeLeo promised to put new legislative limits on noncompetition agreements, the House unanimously passed a bill (150-0) doing just that and also passed the Massachusetts Uniform Trade Secrets Act. To become law, the bill (House Bill 4434) still needs to pass the Senate and be signed by Governor Charlie Baker.
While much of the bill would merely codify some of the key issues judges already look at when analyzing whether an agreement is enforceable under Massachusetts law, there are some provisions that represent a sea change in the noncompete landscape.
