Employee Mobility and Restrictive Covenants - Page 8 of 16

Top 10 Non-Compete Law Developments of 2021

The top 10 non-compete law developments in 2021 demonstrated a continued hostility by lawmakers and courts toward noncompetition and no-hire agreements, as well as the need for employers to stay current on the diverse state-specific limitations governing restrictive covenants, new federal activity in the area and ongoing case law developments. In light of these trends, national employers would do well to (1) be selective in identifying those categories of employees required to sign such agreements, (2) rely on allowable choice-of-law and venue provisions to maximize the chances of enforceability, (3) keep a keen eye on likely federal developments in the year ahead and (4) avoid no-poach agreements with employers as a poor substitute for narrowly tailored employee non-compete agreements.

Continue reading “Top 10 Non-Compete Law Developments of 2021”

State & Local Employment Law Developments: Q4 2021

The fourth quarter of 2021 continued the trend of increasing regulation of the workplace by state and local governments. Although it is not possible to discuss all state and local laws, this post provides an overview of recent and upcoming legislative developments to help you and your organization stay in compliance. (Please note that developments related to issues such as minimum wage rates and COVID-19 are not included.)

Continue reading “State & Local Employment Law Developments: Q4 2021”

Part 28 of the “The Restricting Covenant Series”: Worldwide Noncompete Restrictions

Grab your passports, compass and other essential travel gear, as this edition of The Restricting Covenant Series navigates through the treacherous waters of noncompete agreements and their geographic reach.

First Stop: New Jersey

Ah, the Garden State. Home to the most diners and shopping malls. Where the state bird is the American goldfinch, the state flower is the violet, but alas there is no official state song (perhaps a New Jersey native such as Bruce Springsteen, John Bon Jovi or Queen Latifah will change that). Who would ever want to leave? Well, suppose you worked for a New Jersey company that required you to sign a noncompete with a geographic restriction that prohibits you from competing in business against your employer anywhere within the entire Garden State after your employment ends (that’s right, all 365 exits and entrances on the Garden State Parkway). Could such a statewide geographic restriction be enforced? The short answer is: Maybe.

Continue reading “Part 28 of the “The Restricting Covenant Series”: Worldwide Noncompete Restrictions”

State & Local Employment Law Developments: Q3 2021

2021 continues the trend of increasing regulation of the workplace by state and local governments. Although it is not possible to discuss all state and local laws, this update provides an overview of recent and upcoming legislative developments to help you and your organization stay compliant. (Please note that developments specifically related to minimum wage rates and COVID-19 are not included.)

Continue reading “State & Local Employment Law Developments: Q3 2021”

President Biden Targets Non-Compete Agreements in New Executive Order on Promoting Competition

As part of “a whole-of-government effort to promote competition in the American economy,” President Biden’s July 9 Executive Order on Promoting Competition in the American Economy encourages the Federal Trade Commission to ban or limit non-compete agreements. In doing so, President Biden continues — and potentially accelerates — what to date has been a piecemeal effort conducted almost exclusively at the state level to limit, and in some cases prohibit, the use of non-competes, particularly for low-wage workers.

Continue reading “President Biden Targets Non-Compete Agreements in New Executive Order on Promoting Competition”

Amendments to the Illinois Freedom to Work Act: Significant Changes Coming to Illinois Noncompete and Nonsolicitation Agreements

While restrictive covenants abound in the employment landscape, the Illinois legislature is shoring up efforts to rein in the use of such agreements. The latest push? A bill to amend the Illinois Freedom to Work Act to expand the ban on noncompetes to a larger population of workers and provide certain rights to employees who are asked to sign noncompete and nonsolicitation agreements as a condition of employment. With Gov. J.B. Pritzker poised to sign that bill, employers should begin evaluating how those amendments will impact their use of noncompete and nonsolicitation agreements and what changes will be necessary to comply with the new law.

Continue reading “Amendments to the Illinois Freedom to Work Act: Significant Changes Coming to Illinois Noncompete and Nonsolicitation Agreements”