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

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

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

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

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

Continue Reading Virginia Moves to Protect Laid Off Workers
  • Enforceability of non-compete and non-solicitation agreements
  • Statutory notice, timing, and wage threshold requirements
  • Judicial trends and
Continue Reading Now Available! Seyfarth’s 2026 50-State Non-Compete Desktop Reference — Your Essential Guide

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

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

On September 5, 2025, the Federal Trade Commission (FTC) moved to dismiss its appeals in two pivotal cases— Ryan, LLC v. FTC, No. 24-10951 (5th Cir.) and Properties of the Villages v. FTC, No. 24-13102 (11th Cir.)—effectively walking away from its effort to enforce the Noncompete Rule, which attempted to ban most noncompete agreements nationwide.

As previously noted, the FTC had sought a 120-day stay of its appeals after district courts struck down the Noncompete Rule. Today’s move marks another sharp reversal under the agency’s new Republican-led leadership, distancing itself from the more aggressive regulatory stance of former Chair Lina Khan. It also echoes the June 28, 2024, dissent by current FTC Chair Andrew N. Ferguson and Commissioner Melissa Holyoak, and aligns with recent signals from the administration favoring targeted enforcement over sweeping rulemaking.

While the Noncompete Rule may be dead, the FTC is not done with noncompetes. Businesses should brace for focused crackdowns, joint task forces, and case-by-case scrutiny. In addition, the FTC has recently solicited additional public input “to better understand the scope, prevalence, and effects of employer noncompete agreements, as well as to gather information to inform possible future enforcement actions.”

The era of agency blanket bans may be over—but regulatory pressure is far from gone.
Continue Reading End of an Era: FTC Backs Away from Nationwide Noncompete Ban

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

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

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

Continue Reading Florida Becomes Most Employer-Friendly State for Non-Competes

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

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

With the FTC Ban on non-competes essentially dead in the Courts of Appeal, various states and agencies have taken up the mantle to further limit or expand the use of restrictive covenants for certain populations in 2025. 

Below is a list of major legislative changes, judicial decisions, and agency actions at the state and federal level affecting non-compete agreements in

Continue Reading Restrictive Covenant Law For The First Four Months of 2025