On August 10, 2022, Colorado House Bill 22-1317 became law. Following the national trend of limiting employer use of non-compete and non-solicit covenants, Colorado now prohibits the use of non-competes and non-solicits except in the sale of business context and with “highly compensated” workers. The law also provides specific notice requirements and imposes costly penalties for non-compliance. The law’s requirements and penalties are not retroactive. The key requirements of the new law are as follows:

Continue Reading Colorado’s New Restrictive Covenant Law Now Effective

Following a nationwide trend, New Jersey recently joined a growing list of states seeking to limit the use of non-compete and non-solicitation agreements by employers.

Continue Reading What Employers Need to Know About Newly Proposed Non-Compete Legislation in New Jersey

Since President Biden’s July 2021 direction to the Federal Trade Commission (“FTC”) to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility,” the FTC has ratcheted up its scrutiny of and investigations into non-compete agreements and other restrictive covenants. Now, the FTC has expanded beyond post-employment restrictive covenants to tackle “sale of business” non-competes. Most recently, the FTC voted in favor of a deal-changing proposed order against ARKO Corp. related to its 2021 acquisition of sixty fuel outlets from Corrigan Oil Company.

Continue Reading Buyer (and Seller) Beware: The FTC Is Coming for Your M&A Non-Competes

Over the past two years, employee mobility seems to be at an all-time high.  In fact, the labor market is so fluid that pundits and experts often refer to it as the “Great Resignation.”  Although employee mobility can be a great opportunity for both employees and prospective employers, employers hiring new employees should always beware of potential problems such as restrictive covenants, which may follow an employee to a new job.
Continue Reading Void vs. Voidable: The Distinction That Can Make or Break a Tortious Interference Claim in Light of the Great Resignation

Illinois recently passed legislation amending the Freedom to Work Act (the “Act”), following a growing trend of states imposing greater restrictions on employers’ use and enforcement of non-competition and non-solicitation covenants.
Continue Reading Illinois Imposes New Restrictions on Non-Competes and Non-Solicits

On August 13, 2021, Governor Pritzker signed into law a bill amending the Illinois Freedom to Work Act governing restrictive covenants and non-competition agreements.  On May 30, 2021, the Illinois General Assembly passed a bill codifying existing noncompete law in some respects and modifying it in others.  We detailed the Bill in a prior blog here.  The Bill is now the law.  The amendments become effective on January 1, 2022 and will not apply retroactively.

Continue Reading Illinois Governor Signs Non-Compete Legislation

Following a nationwide trend, Illinois has proposed significant legislation affecting employee restrictive covenants, such as non-compete agreements.  While the proposed law does not dramatically change most aspects of the patchwork of Illinois common law, it adds certainty to long-questioned areas and imposes several threshold hurdles and eligibility factors to the test for assessing enforceable restrictive covenants.

Continue Reading What Employers Need to Know About New Non-Compete Legislation in Illinois

On January 11, 2021, D.C. Mayor Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”), which, once effective, will be one of the broadest bans on non-compete agreements in the country.  Notably, the Act not only forbids agreements and policies that prohibit an employee from being employed by another person, performing work or providing services for pay for another person, or operating the employee’s own business after the employee’s separation from employment, it also bans agreements and policies that prohibit the aforementioned activities during the employee’s employment—thereby rendering anti-moonlighting policies impermissible in the District.  Further, unlike state laws that only prohibit non-competes for lower income workers, the Act applies to D.C. employees regardless of their salary.

Here are the key points employers should know:
Continue Reading New Year, New Rules: The District of Columbia’s New Ban on Non-Compete Agreements