New York Likely to Become the Latest State to Ban Employee Noncompetition Covenants
Duane Morris Blogs | Non-Compete & Trade Secrets Law
by Duane Morris
5M ago
On June 20, 2023, the New York Assembly approved legislation that would ban noncompetition agreements in employment contracts. The bill, A1278B/S3100A, is expected to be signed by Governor Kathy Hochul, which will make New York the fifth state in the U.S. to ban noncompetition covenants in agreements between employers and employees. Similar statutes already exist in California ..read more
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Minnesota Joins the Ranks of States Banning Employee Noncompetition Covenants
Duane Morris Blogs | Non-Compete & Trade Secrets Law
by Duane Morris
10M ago
Minnesota is now the fourth state in the U.S. to ban noncompetition covenants in agreements between employers and employees, under a bill signed into law by Governor Tim Walz on May 24, 2023. Similar statutes already exist in California, Oklahoma and North Dakota. When Does the Law Take Effect? The law is effective immediately, but ..read more
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NLRB Effort the Latest Attempt to Curtail Enforcement of Non-Compete Agreements
Duane Morris Blogs | Non-Compete & Trade Secrets Law
by Duane Morris
10M ago
On May 30, 2023, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memorandum asserting that the “proffer, maintenance, and enforcement” of most non-compete provisions in employment contracts violate the National Labor Relations Act (NLRA). This memorandum follows on the heels of other recent efforts to curtail non-compete provisions, including the Federal Trade Commission’s proposed rule that—if ..read more
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Bipartisan Senate Seeks to Largely Eliminate Noncompete Agreements in New Bill
Duane Morris Blogs | Non-Compete & Trade Secrets Law
by Duane Morris
10M ago
In the wake of the Federal Trade Commission’s (FTC) proposed regulation banning noncompete agreements except in limited circumstances, a bipartisan Senate group led by Democrat Senator Chris Murphy of Connecticut and Republican Senator Todd Young of Indiana introduced the Workforce Mobility Act of 2023 on February 1, 2023. If enacted, the legislation would effectively eliminate noncompete agreements entered into ..read more
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FTC Proposes a Retroactive, Nationwide Ban on Non-Compete Clauses
Duane Morris Blogs | Non-Compete & Trade Secrets Law
by Duane Morris
10M ago
Just one day after entering into consent agreements invalidating non-competes with three companies, on January 5, 2023, the Federal Trade Commission (FTC) proposed a new non-compete rule that would prohibit employers from entering into, maintaining, enforcing or threatening enforcement of a non-compete clause with virtually any worker and invalidate existing non-compete clauses with both current and former workers. If ..read more
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FTC Votes on Proposed Consent Orders Invalidating Noncompete Agreements of Three Companies
Duane Morris Blogs | Non-Compete & Trade Secrets Law
by Duane Morris
10M ago
On January 4, 2023, the U.S. Federal Trade Commission (FTC) took legal action for the first time to prohibit the use of noncompete restrictions by three companies and their executives. In doing so, the FTC flexed its newly reestablished standalone authority under Section 5 of the FTC Act. In a partisan 3-to-1 vote, the FTC commissioners voted ..read more
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FTC Expands Boundaries of What It Considers Unfair Competition Methods Under FTC Act Section 5
Duane Morris Blogs | Non-Compete & Trade Secrets Law
by Duane Morris
10M ago
On November 10, 2022, the Federal Trade Commission (FTC) issued a policy statement that significantly expands the scope of what the FTC considers “unfair methods of competition” under Section 5 of the FTC Act (the “Policy Statement”). The announcement comes more than a year after the FTC rescinded its previous policy against pursuing “standalone” Section 5 Unfair Methods of ..read more
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District of Columbia Walks Back Noncompetition Ban in Favor of Income-Based Threshold
Duane Morris Blogs | Non-Compete & Trade Secrets Law
by Duane Morris
10M ago
In our Alerts published January 22, 2021, February 17, 2021, and March 17, 2022, we detailed the Washington, D.C., Ban on Non-Compete Agreements Amendment Act of 2020. Among other provisions, had it taken effect, the 2020 Act would have rendered void and unenforceable any agreement prohibiting an employee from working for a competitor following employment and while the employee is still employed by the employer ..read more
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Washington, D.C., Again Postpones Its Ban on Noncompetes
Duane Morris Blogs | Non-Compete & Trade Secrets Law
by Duane Morris
10M ago
In our Alerts published January 22 and February 17, 2021, we detailed the various provisions of the broad, new Washington, D.C., Ban on Non-Compete Agreements Amendment Act of 2020 (the Act), slated to take effect once the District of Columbia Council funded the law through the appropriations process. Among other provisions, the Act would render void and unenforceable any agreement prohibiting an employee from ..read more
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Colorado Enacts Legislation Authorizing Potential Criminal Liability for Employers that Violate State Noncompetition Statute
Duane Morris Blogs | Non-Compete & Trade Secrets Law
by Duane Morris
10M ago
A new Colorado law, effective March 1, 2022, will make violations of the state’s noncompetition statute a Class 2 misdemeanor punishable by 120 days in jail, a fine up to $750, or both. Colorado’s noncompetition statute, C.R.S. § 8-2-113, prohibits the use of “force, threats, or other means of intimidation to prevent any person from ..read more
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