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.
Continue reading “Are You Ready? Notice to Employees of Void CA Non-Competes Required by February 14, 2024”
In May, the UK government passed three family-related Acts that employers should be aware of: the Neonatal Care Act; the Protection from Redundancy Act; and the Carer’s Leave Act. UK courts have also made notable rulings on noncompete restrictions, and COVID-19-related health and safety detriment claims.
Continue reading “UK Employment Law Update: Family Acts, UK Government Legislative Proposals and Recent Case Developments”
A recent employer settlement with a National Labor Relations Board Region shows that the General Counsel is not just focused on noncompetition restrictions, but also nonsolicitation restrictions that the General Counsel believes are overbroad.
Continue reading “What Employers Can Learn From the NLRB’s Recent Prosecution and Settlement of a Noncompete Case”
New York state is poised to join four other states in banning employment-related noncompete agreements. In addition to standalone noncompetition agreements, noncompete restrictions on employees within offer letters, employment agreements, stock option agreements and other employment-related agreements, are subject to the new law’s prohibition.
Continue reading “New York Legislature Agrees to Ban Noncompete Agreements”
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”
Gov. Tim Walz has signed or is expected to sign the Minnesota legislature’s Jobs and Economic Development and Labor Omnibus Budget Bill, bringing broad change to the Minnesota employment law landscape. Notably, the new law bans post-employment noncompete agreements in Minnesota, creates state-wide paid sick and safe time leave, prohibits restrictive franchise agreements, modifies wage disclosure protection law, provides additional protections for pregnant and nursing workers, prevents mandatory employer-sponsored meetings, and creates additional paystub requirements for construction workers, among other things. Gov. Walz signed the paid family and medical leave law, creating a new paid family and medical leave program funded by employer and employee payroll taxes and providing up to 12 weeks of paid leave in a single benefit year for an employee’s own serious health condition and up to 12 weeks of paid leave in a single benefit year for bonding, safety leave or family care, with a cap of no more than 20 weeks of total combined leave in any single benefit year. The Minnesota legislature also ended its 2023 session after passing a recreational cannabis law, amending the state’s drug and alcohol testing laws following the legalization of recreational marijuana, which is anticipated to be signed into law by Gov. Walz this week.
Continue reading “Minnesota’s 2023 Legislative Session Brings Major Changes to Minnesota Employment Law”