non-compete legislation

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restricive-covenenat-legislation-trendsOver the past 10–15 years, we have seen an explosion of legislative activity related to restrictive covenants. This activity is happening not only in state legislatures but on the federal level as well. While each proposal is different, we’ve certainly seen trends emerge, including required notice provisions, fee shifting, and choice of law and venue requirements.

One of the most prevalent trends is the move towards banning non-competes (and sometimes, other restrictive covenants) for so-called “low-wage workers.” To date, 10 states have implemented a low-wage ban of sorts: Illinois, Maryland, Maine, Massachusetts, Oregon, Nevada, New Hampshire, Rhode Island, Virginia, and Washington.[1]…
Continue Reading More States Eye Low-Wage Non-Compete Bans

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For the fourth time in six years, Oregon is in the news again for an update to its non-compete laws.

Prior Oregon Law

Oregon last updated its non-compete laws just two years ago, with a statute that requires employers to provide terminated employees with a signed, written copy of their non-compete within 30 days of termination. That new obligation was in addition to other Oregon-specific requirements, including:

  1. Similar to Massachusetts’ 2018 law, the employer must inform the employee that a non-compete is a condition of employment in a written employment offer received at least two weeks before the employee’s first day, or the agreement must entered into upon a “bona fide” promotion;
  2. The employee must be engaged in administrative, executive, or professional work and must (a) perform predominantly intellectual, managerial or creative tasks, (b) exercise discretion and independent judgment, and (c) be salaried;
  3. The employee’s gross annual salary and commissions at the time of termination exceeds the median family income for a four-person family; and
  4. The duration of non-compete duration could not exceed 18 months.

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Continue Reading Oregon Blazes a Trail of Non-Compete Amendments

Following in the footsteps of its neighbors Maine, Massachusetts, and New Hampshire, Rhode Island recently enacted legislation that restricts the use of non-competition agreements with certain types of employees. The Rhode Island Noncompetition Agreement Act, which becomes effective on January 15, 2020, prohibits non-competes without regard to geographic location and duration for the following types of employees:

  • Non-exempt employees under the FLSA;
  • Undergraduate or graduate students participating in an internship or short-term employment;
  • Employees aged 18 or younger; and
  • Low-wage workers (defined as earning 250% or less of the federal poverty level ($31,225 per year under current data).

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Continue Reading Rhode Island Joins the Fray, Passing Legislation that Restricts the Use of Non-Compete Agreements for Certain Low-Wage Workers

The Vermont Legislature kicked off 2019 with bill H.1, seeking to ban non-competes in the Green Mountain State. The new bill has been filed by Martin LaLonde, who promulgated an identical bill last January. The 2018 bill was read and referred to the Committee on Commerce and Economic Development and never made further progress. Rep. LaLonde has a new co-sponsor…
Continue Reading Vermont Seeks to Ban Non-Compete Agreements

We attended a hearing today before the Massachusetts Legislature’s Joint Committee on Labor and Workforce Development regarding the pending non-compete legislation on which we have previously posted. 

Among others who testified about the issue was Governor Deval Patrick’s Secretary of Housing and Economic Development, Gregory Bialecki. 

Mr. Bialecki finally acknowledged publicly what the Patrick Administration has been dancing around …
Continue Reading Is Massachusetts Inching Closer to California? Governor Deval Patrick Issues Public Support for the “Outright Elimination” of Non-Compete Agreements

We previously reported on H.B. 6658, which was introduced earlier this year in the Connecticut House of Representatives. On the last day of the legislative session, the Connecticut legislature enacted a substantially watered-down version of the bill as Public Act No. 13-309, the full text of which can be found here. In yet another twist, however, last Friday Governor…
Continue Reading Connecticut Governor Vetoes Noncompete Statute Passed By Legislature

By Jessica Mendelson and Robert Milligan

New Jersey state legislators recently proposed A3970, a bill designed to prevent New Jersey businesses from enforcing “non-compete agreements with staffers who can claim unemployment compensation.”

The bill, which is sponsored by Assembly members Joseph Egan and Peter Barnes, was recently referred to the state’s Assembly Labor Committee. If the bill passes, it…
Continue Reading New Jersey Legislators Propose Banning Non-Compete Agreements With Employees Who Can Claim Unemployment