Part 24 of “The Restricting Covenant” Series: Choice of Law and Covenants Not to Compete

There are many notable east coast-west coast rivalries.  In sports (Celtics versus Lakers basketball), in leisure (Atlantic versus Pacific beaches), or in food (Shake Shack versus In-N-Out Burger), to name a few.  With respect to restrictive covenants, the conflict between Delaware, which is generally considered a “pro-enforcement” jurisdiction, and California, which is generally considered an “anti-enforcement” jurisdiction, definitely stands out in the crowd.  This installment of the Restricting Covenant Series looks at the competing views of the Golden State and The First State’s on the enforceability of restrictive covenants, and the critical importance of conducting a “choice of law” analysis to settle this feud.

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Do You Have Independent Contractors in California?

If so, you should be on alert about California Assembly Bill 5 (AB5), a bill based on the California Supreme Court’s decision in Dynamex v. Superior Court.* If it becomes law, AB5 will have wide-ranging repercussions for companies that rely on independent contractors in California.

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Maine and New Hampshire Join National Trend, Enacting Laws Prohibiting Non-Competes for Lower-Wage Workers

As we have previously discussed, there is an ongoing trend of states prohibiting the use of non-compete agreements in certain situations, including with lower-wage workers. Maine and New Hampshire are the most recent examples.

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Landmark Chicago “Fair Workweek” Ordinance Entitles Employees to Pay for Schedule Changes and Lost Work Hours

On July 23, 2019, the Chicago City Council passed the controversial Chicago Fair Workweek Ordinance (the Ordinance). Once Chicago Mayor Lori Lightfoot, a vocal proponent of the Ordinance, signs it into law, the Ordinance is scheduled to take effect for the majority of covered employers on July 1, 2020.

The Chicago Ordinance covers:
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New Jersey Expands Employment Protections to Medical Marijuana Users

New Jersey recently joined a growing number of states, including Arizona, Arkansas, Connecticut, Delaware, Illinois, Maine, Massachusetts, Minnesota, Nevada, New York, Oklahoma and Rhode Island, that afford certain job protections to employees and applicants who use medical marijuana.

On July 2, 2019, New Jersey Governor Phil Murphy signed the Jake Honig Compassionate Use Medical Cannabis Act into law, which significantly amended and expanded the New Jersey Compassionate Use Medical Marijuana Act, N.J.S.A. 24:61-2 et seq.

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Alabama Enacts New Equal Pay Law to Prevent Wage Disparity on Basis of Sex or Race

On June 11, 2019, Alabama’s governor, Kay Ivey, signed equal pay legislation (the “Act”), which goes into effect on September 1, 2019. Alabama now joins a growing number of states, including California, Colorado, Maryland, Massachusetts, and New Jersey, with newly enacted equal pay laws.

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