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

In our Alerts published January 22, 2021February 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.

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.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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