Restrictive Covenants

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Governor Signs Washington’s New Noncompete Law: What Employers Should Know—and How to Prepare

By Michael Wexler on March 24, 2026

Posted in Employment Agreements, Non-Competes, Restrictive Covenants, State Non-Compete Legislation Update, Trade Secrets

For personal or editorial use only — Thom Milkovic, Unsplash

Washington yesterday adopted a major shift in its approach to employee restrictive covenants. Engrossed Substitute House Bill 1155 (ESHB 1155), approved by the Legislature in March 2026 and signed by the Governor yesterday, eliminates the use of noncompetition agreements in employment and independent contractor relationships beginning June 30, 2027 in specified situations including notices to existing agreement holders by October…

Washington State Poised to Ban Noncompetition Agreements: What Employers Need to Know

By Thomas Wybenga & Kate Bradley on March 17, 2026

Posted in Employee Non-Solicits, Legislation, Non-Competes, Restrictive Covenants, State Non-Compete Legislation Update

Washington State Capitol / Washington — Nils Huenerfuerst, Unsplash

Washington State has long taken a skeptical view of noncompetition agreements—and that skepticism is now on the brink of becoming a complete ban. Both chambers of the Legislature have approved Engrossed Substitute House Bill (ESHB) 1155, and the bill now awaits Governor Bob Ferguson’s signature, which is widely expected.

If signed, the law will dramatically reshape Washington’s restrictive covenant landscape. It…

Virginia Moves to Protect Laid Off Workers

By Marcus Mintz on March 5, 2026

Posted in Employment Agreements, Legislation, Non-Competes, Restrictive Covenants, State Non-Compete Legislation Update

1772743893-13379-4181-lxb_photoCtknYD1I5colxb_photo- — Kellie Shannon, Unsplash

Virginia’s Senate Bill 170 (2026 Session) introduces new limitations on the enforceability of restrictive covenants by protecting employees who are terminated without cause. More specifically, the proposed amendment will render any non-compete unenforceable against an employee who was discharged from employment unless severance benefits or other monetary payments are made to the employee. The law is silent as to what…

Key Takeaways and Access to Webinar Recording – 2025 Year in Review: Trade Secrets, Computer Fraud & Non-Competes

By Michael Wexler, Dawn Mertineit & Robyn Marsh on February 9, 2026

Posted in Legislation, Non-Competes, Restrictive Covenants, Trade Secrets

1770652174-13363-3632-lxb_photoTlFw-WoI8_wlxb_photo- — Sigmund, Unsplash

To kick off the 2026 Trade Secrets Webinar Series, Seyfarth’s Trade Secrets, Computer Fraud & Non-Competes practice group presented 2025 Year in Review: Trade Secrets, Computer Fraud & Non-Competes, a timely discussion examining the most significant legal developments from 2025 and their implications for employers moving forward.

Seyfarth partners Michael Wexler, Dawn Mertineit, and Robyn Marsh provided a comprehensive…

Let’s Start at the Very Beginning: Delaware Supreme Court Reaffirms That Consideration for Restrictive Covenants Is Measured at Contract Formation, Not Time of Enforcement

By Dawn Mertineit on February 4, 2026

Posted in Employment Agreements, litigation, Non-Compete Enforceability, Non-Competes, Restrictive Covenants

Judge gavel and book on black background. Law and justice concept — Sasun Bughdaryan, Unsplash

On February 3, 2026, the Delaware Supreme Court issued a short but highly anticipated order in North American Fire Ultimate Holdings, LP v. Doorly, reversing the Chancery Court’s dismissal of contract claims seeking to enforce restrictive covenants against a former senior executive. The decision clarifies that the existence of consideration supporting restrictive covenants must be evaluated at the time…

Now Available! Seyfarth’s 2026 50-State Non-Compete Desktop Reference — Your Essential Guide

By Seyfarth Shaw LLP on February 3, 2026

Posted in FTC’s Crackdown on Non-Competes, Non-Compete Enforceability, Non-Competes, Restrictive Covenants, State Non-Compete Legislation Update

Enforceability of non-compete and non-solicitation agreements
Statutory notice, timing, and wage threshold requirements
Judicial trends and

California Employment Contracts Must be Updated by January 1, 2026 for Stay-or-Pay Reforms

By Marc Fosse on January 14, 2026

Posted in Employment Agreements, Legislation, Restrictive Covenants, State Non-Compete Legislation Update

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Seyfarth Synopsis: Effective January 1, 2026, new California law prohibits stay-or-pay clauses in contracts of employment with limited exceptions.

Under new Section 16608 of the California Business and Professions Code, effective January 1, 2026, employers are prohibited from entering into an employment contract or other contract relating to the employment relationship that requires an employee to repay any amount…

Seyfarth’s Josh Salinas Authors “Recent Developments in Employee Mobility, Restrictive Covenants and Trade Secrets 2025” in ABA Business Law Today

By Daniel Joshua Salinas on August 22, 2025

Posted in Employment Agreements, Federal Non-Compete Legislation Update, FTC’s Crackdown on Non-Competes, Intellectual Property, Non-Competes, Restrictive Covenants, State Non-Compete Legislation Update, Trade Secrets

1755881560-13272-6276-lxb_photob0pNcKAPDSglxb_photo- — Sasun Bughdaryan, Unsplash

We are pleased to share that Seyfarth attorney Josh Salinas authored the article, “Recent Developments in Employee Mobility, Restrictive Covenants and Trade Secrets 2025,” published on August 11, 2025, in the American Bar Association’s Business Law Today.

In the article, Josh examines key developments in employee mobility, trade secret protections, and restrictive covenant enforcement over the past year. He highlights…

Florida Becomes Most Employer-Friendly State for Non-Competes

By Bob Stevens on July 9, 2025

Posted in Employment Agreements, Legislation, Non-Competes, Practice & Procedure, Restrictive Covenants, State Non-Compete Legislation Update

I took this picture when I went to Ultra Music Festival, Miami in 2019 — Denys Kostyuchenko, Unsplash

As jurisdictions around the country continue to impose limitations—or outright bans—on restrictive covenants, Florida is taking a decidedly different approach. The Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act (“the Act”) effective as of July 1, 2025 permits employers to use non-compete and garden leave restrictions up to 4 years in length with qualifying “covered employees,” along…

Non-Compete Agreements in Health Care: A Rapidly Evolving Legal Landscape

By Jesse M. Coleman & Reeves Gillis on June 30, 2025

Posted in Employment Agreements, FTC’s Crackdown on Non-Competes, Health Care, Non-Competes, Restrictive Covenants, State Non-Compete Legislation Update

In the wake of the Federal Trade Commission’s recently failed attempt to ban non-compete agreements between employers and workers,[1] individual states have once again taken up the mantle of further regulating and limiting their use. These states’ new efforts have appeared with greatest frequency in the health care sector.

In states where noncompete laws have recently changed, legislatures appear…

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