Expect Delay of Washington, D.C., Ban on Noncompetes Until October 1, 2021

In our Alert published January 22, 2021, entitled “Washington, D.C. Employers Prepare for Broad Ban on Noncompetes and Related Workplace Policies,” we detailed the various provisions of the broad, new Ban on Non-Compete Agreements Amendment Act of 2020 and explained that the law would take effect after a 30-day congressional review period, approval and publication in the District of Columbia Register. It is important to clarify, however, that approval requires that the District of Columbia Council fund the law through the appropriations process. Therefore, the law will not actually go into effect until its inclusion in an approved budget and financial plan (the “effective date”).

Read the full Alert on the Duane Morris LLP website.

The “No Update” Update: Massachusetts Legislature Concludes Session Without Passing Noncompete Reform

By Bronwyn L. Roberts

As reported in The Boston Globe, the Massachusetts Senate and House concluded their legislative session on July 31, 2016, without passing noncompete reform legislation. This comes as a bit of a surprise as the House and Senate have in 2016 each passed a noncompete reform bill. Additionally, Governor Charlie Baker has, through a spokesperson, recently indicated support for the House bill that sought to restrict noncompetes by creating “Garden Leave,” consisting of payment during the restricted period of at least 50 percent of the employee’s annualized base salary. However, for those who have followed this process over the years, the fact that neither bill passed is consistent with many other failed attempts over the years to overhaul the Massachusetts noncompete landscape.

Thus, the noncompete reform debate, which has been ongoing in the Massachusetts legislature since at least 2009, continues. We will keep you updated.

Continue reading “The “No Update” Update: Massachusetts Legislature Concludes Session Without Passing Noncompete Reform”

House Unanimously Passes Legislative Limits on Massachusetts Noncompetes and Passes Massachusetts Uniform Trade Secrets Act and, in Doing so, Introduces Paid Garden Leave

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.

Continue reading “House Unanimously Passes Legislative Limits on Massachusetts Noncompetes and Passes Massachusetts Uniform Trade Secrets Act and, in Doing so, Introduces Paid Garden Leave”

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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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