Seyfarth Synopsis: While New York State failed to pass a non-compete ban last year, a new bill in the New York City Council would eliminate non-compete agreements entirely, presenting new challenges and considerations for employers in the Big Apple.

On December 12, 2023, the New York State Legislature delivered a bill for the Governor’s signature that would have banned “any agreement, or clause contained in any agreement, between an employer and a covered individual that prohibits or restricts such covered individual from obtaining employment, after the conclusion of employment with the employer included as a party to the agreement.” Governor Hochul vetoed that bill on December 22, 2023, and thus far there has been no further activity on this subject in the new Legislative term.

Stepping into the breach, two members of the New York City Council introduced a bill on February 28, 2024 that would ban all current and future non-compete agreements in the Big Apple. The bill broadly applies to “an agreement between an employer and a worker that prevents, or effectively prevents, the worker from seeking or accepting work for a different employer, or from operating a business, after the worker no longer works for the employer.” The bill defines “worker” to include independent contractors and specifies that it is unlawful to merely attempt to enter into a non-compete agreement with any worker.Continue Reading NYC Council Proposes Broad Non-Compete Ban

Love is in the air. With Valentine’s Day just around the corner, we’re writing to share some heartfelt news about a recent change in California law that might just make your heart skip a beat.

In the spirit of spreading love (and compliance), a new law, Section 16600.1 of the Business and Professions Code, has made it unlawful to

Continue Reading California’s New Love Law: Seyfarth’s Valentine’s Day Legal Update on Non-Competes and Compliance Messages

Wednesday, January 10, 2024
12:00 pm – 1:04 pm PT

Seyfarth’s co-chair of the Trade Secrets, Computer Fraud, and Non-Competes practice, Robert Milligan, will lead a panel of legal experts in dissecting the FTC’s recent crackdown on non-compete agreements. This California Lawyers Association webinar, scheduled for January 10, 2024, explores the implications of the FTC’s proposed rule, providing crucial

Continue Reading Robert Milligan to Headline California Lawyers Association Webinar on FTC’s Crackdown on Non-Competes

In a recent decision, the Eleventh Circuit seemed to approve a more forgiving standard for reviewing restrictive covenants. Courts generally have three colors in their markup kit for restrictive covenants. The first—and most severe—is the red pencil. In those jurisdictions, if any aspect of a restrictive covenant is overbroad, the court strikes out the whole provision. The second—and most common—is

Continue Reading Georgia Signals Greater Leeway in Revising Overbroad Non-Competes

We invite you to watch our highly anticipated webinar, where Seyfarth Shaw LLP’s leading attorneys in non-compete law skillfully guide you through the intricacies of non-compete agreements in the United States, focusing on the latest updates in 2023. This essential webinar provides exclusive insights from our 2023-2024 edition of the 50-State Desktop Reference.

Here are the key takeaways from

Continue Reading Webinar Recap! What Employers Need to Know Regarding Non-Compete Changes in 2023

We are excited to present the latest edition of our renowned resource, the 50-State Non-Compete Desktop Reference, thoughtfully updated by our distinguished Trade Secrets, Computer Fraud, and Non-Competes practice group.

Key Features:

  • Comprehensive Updates: Covering key jurisdictions such as California, New York, and many more.
  • In-Depth Topics: Covers vital aspects such as penalty frameworks, wage thresholds, and notice requirements.
  • Expert Contributions: Draw from the knowledge of our Trade Secrets, Computer Fraud, and Non-Competes practice group.

Access: To access this invaluable resource, click here.

Feel free to reach out to your dedicated Seyfarth attorney for any assistance or questions regarding non-compete and trade secrets law.Continue Reading Seyfarth’s Updated 50-State Non-Compete Desktop Reference – Your Trusted Resource

California has done it again!

We reported last month concerning California’s new non-compete law that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements. Specifically, the new law, signed by Governor Newsom on September 1st, provides that any contract that is void under California law is unenforceable regardless of where and when

Continue Reading Golden State Crackdown on Non-Competes: California Enacts Second Non-Compete Law To Curtail Use of Non-Competes With Employees

The National Labor Relations Board moved from theory to practice in this administration’s battle against restrictive covenants. Recently, the Regional Director of Region 9 of the National Labor Relations Board filed a consolidated complaint alleging that certain restrictive covenants contained in offer letters and policies in an employee handbook violated the National Labor Relations Act. This complaint is a logical

Continue Reading We’ve Got a Test Case: The NLRB Files its First Complaint Challenging the Validity of Restrictive Covenants

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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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