On April 23, 2024, in a 3-2 vote along party lines, the U.S. Federal Trade Commission issued a final rule that will ban essentially all employment noncompete agreements nationwide. This alert dives into the key takeaways and what to expect next.
To view the full alert, visit the Faegre Drinker website.
California law has for many years treated agreements that restrain one from engaging in a lawful profession, trade, or business as void and unenforceable, unless an exception applies. This applies to most non-compete and non-solicitation agreements with California employees.
Citing to California Supreme Court precedent that voided a post-employment non-compete and to state public policy favoring employee mobility, AB 1076 and SB 699, both effective January 1, 2024, prohibit employers from including, entering into, and attempting to enforce a noncompete clause in an employment contract, or otherwise requiring an employee to enter a noncompete agreement, absent an exception.
2023 proved to be a very busy year for those monitoring developments in the area of noncompetition law. We highlight 10 major state and federal developments from 2023 in the area of employee noncompetition law, including increased state and federal efforts to outright ban their use.
To view the full alert, visit the Faegre Drinker website.
This year brought many changes to Colorado’s employment laws. We offer a summary addressing the new regulations, and suggestions for employers to prepare for the new year.
To view the full alert, visit the Faegre Drinker website.
The 2023 Colorado legislative session ended with the state significantly increasing employee protections through several laws that either created new protections or materially amended current protections.
The General Counsel of the National Labor Relations Board (the Board) issued new guidance announcing her position that certain noncompete agreements violate the National Labor Relations Act. Citing McLaren Macomb, the General Counsel urged the Board to adopt her position regarding noncompete agreements, arguing that the Board already embraced a similarly restrictive standard for analyzing the lawfulness of severance agreements.
Continue reading “NLRB GC’s Latest Guidance Expands Restrictions to Noncompete Provisions”