Colorado Increases Its Criminal Penalty for Violations of Its Noncompete Law

On July 6, 2021, the Colorado legislature passed S.B. 21-271 in an effort to reform the sentencing provisions related to a number of petty offenses and misdemeanors. As a result, several Colorado laws related to labor and employment are affected, including Colorado’s statute addressing restrictive covenant and noncompete agreements, C.R.S. § 8-2-113. Under C.R.S. § 8-2-113, it is unlawful to intimidate workers in order to limit their ability to engage in lawful work; and covenants that restrict trade, such as noncompete and nonsolicitation agreements, are void unless the covenants fit within limited exceptions provided under the statute. Effective March 1, 2022, the penalty for violating the noncompete statute will be increased to a class 2 misdemeanor punishable by up to 120 days in jail, or a fine of up to $750, or both.

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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.)

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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.)

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D.C. Signs Broad Ban on Noncompetes and Anti-Moonlighting Policies

With the issuance of the D.C. Ban on Non-Compete Agreements Amendment Act of 2020 (the Act), the District joins the growing list of jurisdictions subjecting noncompetes to intense scrutiny. D.C.’s Act goes much further though, and once in effect will be one of the broadest limitations on such agreements in the country. While the Act’s precise effective date remains unclear, employers should begin reviewing their existing policies and form agreements now to ensure compliance with the sweeping prohibitions.

For the full alert, visit the Faegre Drinker website.

Top 3 Employee Mobility and Restrictive Covenant Issues to Watch For in 2021

With 2020 finally in our rearview mirror, we can begin to look ahead to a promising and prosperous 2021. As the cloud of COVID-19 starts to lift (thanks to several vaccines), we expect employers will slowly begin to reopen their offices, employees will travel more, and the job market may revert back to the low unemployment levels that predated the onset of COVID-19 in March 2020. The ever-changing landscape of restrictive covenants certainly could affect all of this employment-related activity, including non-competes and non-solicits. Here are our early predictions for the Top 3 hot-button issues to look out for in the coming year.

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Biden Proposes Nationwide Non-Compete Ban

President-Elect Biden recently released his “Plan for Strengthening Worker Organizing, Collective Bargaining, and Unions.” His Plan states that “Biden will work with Congress to eliminate all non-compete agreements, except the very few that are absolutely necessary to protect a narrowly defined category of trade secrets, and outright ban all no-poaching agreements,” which are common in franchisor/franchisee and other arrangements. The foregoing statement is consistent with Biden’s previous comments about eliminating non-compete restrictions and no-poaching agreements while on the campaign trail, as well as with the Obama administration’s call for states to ban non-compete agreements.

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