State Non-Compete Legislation Update

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On September 1, 2023, California Governor Gavin Newsom signed legislation that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements. Specifically, the new law provides that any contract that is void under California law is unenforceable regardless of where and when the employee signed the contract.

Under existing California law, non-compete agreements…

Continue Reading New California Non-Compete Law Furthers the State’s Employee Mobility Protections and Seeks to Void Out of State Employee Non-Compete Agreements
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Following the recent passage through the New York State Senate, on June 20, 2023, the New York State Assembly voted to approve a bill, which, if enacted, would ban all post-employment non-compete agreements. We previously reported on the key features of Senate Bill S3100A here. Assembly Bill A1278 is now headed to Governor Hochul’s desk for review, and she…

Continue Reading New York Update: Bill Banning Non-Competes Passes State Assembly and Awaits Signature by Governor Hochul
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New York is poised to join the growing number of states enacting legislation to curtail the use of non-compete agreements by employers. On June 7, 2023, the New York State Senate voted to pass Bill No. S3100A, which, if enacted, would ban all post-employment non-compete agreements, along with Bill No. S6748, which is generally aimed at preventing the establishment of monopolies, monopsonies, and restraints of trade by, among other things, curtailing  the use of non-compete agreements. The Bills are currently awaiting passage by the New York State Assembly and are expected to be signed by Governor Kathy Hochul.…

Continue Reading New York State Senate Approves Bills Banning Use of Non-Compete Agreements

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As various states and federal agencies seek to prohibit or limit the use of non-competes, Connecticut joined the trend. Connecticut’s new legislation, SB 9, expands restrictions on the enforceability of physician non-competes and extends these restrictions to advanced practice registered nurses (APRNs) and physician assistants (PAs).

Connecticut: SB 9

On June 5, 2023, the Connecticut Senate passed SB 9, sending it to Governor Ned Lamont to sign into law. The governor’s signature is a formality as the bill passed both houses of the Connecticut Legislature unanimously. By limiting the circumstances in which non-competes are enforceable under Connecticut law, SB 9 adds additional restrictions to the use of such covenants in physician employment agreements while extending these restrictions to APRN and PA employment agreements. Notably, the bill was significantly amended prior to passage with earlier versions banning non-competes for physicians, APRNs and PAs entirely.…

Continue Reading New Non-Compete Health Care Restrictions in Connecticut

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The Nevada legislature passed new legislation recently that essentially bans all non-compete clauses in physician contracts while severely limiting the instances in which a hospital or psychiatric hospital may employ a physician as an employee, rather than as a contractor. Assembly Bill 11 was introduced in February 2023 and had passed both the Senate and Assembly by May. However, Nevada…

Continue Reading Nevada Seeks to Ban Non-Competes with Physicians
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The FTC is not alone in taking aim at non-competes. Yesterday, the NLRB’s General Counsel Jennifer Abruzzo issued a memo to all regional directors, officers-in-charge, and resident officers at the NLRB stating that non-competes in employment agreements and severance agreements violate the National Labor Relations Act except in rare circumstances. Specifically, Ms. Abruzzo claims that such covenants interfere with workers’…

Continue Reading The NLRB Joins the Fray: Another Attack on Non-Competes
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Minnesota is joining the growing list of state legislatures targeting non-compete agreements, and doing so with one of the most aggressive laws in the nation on the subject. Included as part of the Senate Jobs and Economic Development and Labor Omnibus Budget Bill (S.F. 3035), the newly-enacted Minn. Stat. Section 181.988 (“Section 181.988”) categorically bans non-compete agreements with Minnesota workers…

Continue Reading Gopher State Goes For Broke with Non-Compete Ban
Trade Secrets Year in Review Webinar

Tuesday, January 24, 2023
1:00 p.m. to 2:00 p.m. Eastern
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In the second installment of the 2023 Trade Secrets Webinar Series, Seyfarth attorneys will review the noteworthy legislation, cases, and legal developments from across the nation over the last year…

Continue Reading Upcoming Webinar! 2022 Trade Secrets & Non-Competes Year in Review
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In the final 2022 webinar, Seyfarth attorneys Kate Perrelli, Dan Hart, and Dallin Wilson discussed new and pending legislation and enforcement issues for non-competes.

As a conclusion to this webinar, we compiled a summary of takeaways:

  • State law on restrictive covenant agreements continues to evolve, with more states imposing compensation thresholds, notice requirements, penalties, and other obligations on employers that
… Continue Reading Webinar Recap! Overview of Non-Compete Legislation and Enforcement Issues from 2022
non-compete update for 2022

Wednesday, December 21, 2022
1:00 p.m. to 2:00 p.m. Eastern
12:00 p.m. to 1:00 p.m. Central
11:00 a.m. to 12:00 p.m. Mountain
10:00 a.m. to 11:00 a.m. Pacific

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In the final installment of our 2022 Trade Secrets Webinar Series, our team will focus on new legislation and the enforcement of non-competes. Any company that seeks to use non-compete…

Continue Reading Upcoming Webinar! Overview of Non-Compete Legislation and Enforcement Issues from 2022