Tag: noncompete agreements

Posted on 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.

Posted on 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.

Posted on by Duane Morris

FTC Votes on Proposed Consent Orders Invalidating Noncompete Agreements of Three Companies

On January 4, 2023, the U.S. Federal Trade Commission (FTC) took legal action for the first time to prohibit the use of noncompete restrictions by three companies and their executives. In doing so, the FTC flexed its newly reestablished standalone authority under Section 5 of the FTC Act. In a partisan 3-to-1 vote, the FTC commissioners voted to issue administrative complaints and accept consent agreements that prohibit the firms and their executives from imposing, attempting to impose, enforcing or threatening to enforce noncompete agreements on a broad swath of covered workers. The orders also require the firms to provide written notice to the thousands of impacted workers that the noncompete agreements are null and void.

Read the full Alert on the Duane Morris LLP website.

Posted on 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.

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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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