noncompete agreements – Trade Secrets & Non-Compete Law

March 8, 2024July 26, 2024 by Duane Morris

It’s No Competition: New York City Legislature Proposes Sweeping Non-Compete Bills

On February 28, 2024, the New York City Council introduced a trio of legislative proposals aimed to drastically limit the ability of New York City employers to enter into or enforce non-compete agreements with their workers.

The most sweeping of the bills, Int. 0140-2024, is aptly titled “Prohibition of non-compete agreements.” If passed, the legislation would entirely prohibit businesses in New York City from entering into, or even maintaining, non-compete agreements with any of their workers. All employers would be covered by the bill, as the proposed law defines “employer” to mean “a person that hires or contracts with a worker to work for a person.” The far-reaching bill seeks to apply a prohibition on non-compete agreements to all individuals who work for an employer, whether paid or unpaid, and includes employees as well as independent contractors.

Read the full Alert on the Duane Morris LLP website.

January 2, 2024July 26, 2024 by Duane Morris

Legislation Prohibiting Noncompete Agreements Vetoed by New York Governor

On December 22, 2023, Governor Kathy Hochul vetoed a bill that would have prohibited almost all noncompete agreements in employment contracts in New York. The bill, passed by the New York Legislature in June (see our previous Alert), would have applied to all employers and most individuals, including independent contractors, regardless of compensation level.

Read the full Alert on the Duane Morris LLP website.

October 18, 2023 by Duane Morris

New California Law Further Strengthens the Golden State’s Noncompete Ban

On October 13, 2023, California Governor Gavin Newsom signed into law Assembly Bill 1076, which further expands the claims and remedies against California employers for noncompete agreements that violate state law and requires employers to provide individualized notice to employees and former employees who are parties to noncompete agreements that violate California law. The enactment of this law, on the heels of the enactment of Senate Bill 699 (see our previous Alert), further reinforces the state’s strong policy of prohibiting noncompete agreements in any form.

Read the full Alert on the Duane Morris LLP website.

July 16, 2023October 16, 2023 by Duane Morris

New York Likely to Become the Latest State to Ban Employee Noncompetition Covenants

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.

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.

August 10, 2021June 22, 2023 by Duane Morris

Oregon and Nevada Amend Noncompete Statutes and Bolster Employee Protections

Oregon and Nevada recently amended their noncompete statutes to further limit the circumstances under which employers may enforce noncompetition covenants against ex-employees.

Read the full Alert on the Duane Morris LLP website.