Colorado employers have less than two months to bring their noncompetition restrictions into compliance with HB22-1317, a bill passed by the Colorado Legislature in May 2022. HB22-1317, also known as the Restrictive Employment Agreements Act (the Act), will significantly change Colorado’s restrictive covenants statute, C.R.S. § 8-2-113, limiting the enforceability of noncompetition and customer nonsolicitation … Continue Reading
Under Texas law, to establish an enforceable covenant not to compete, the first question is often whether the covenant is supported by adequate consideration. Unlike many states, in Texas, an employer cannot pay for a restrictive covenant (which includes both noncompetes and customer non-solicitation restrictions). In other words, in Texas, a raise, bonus or severance … Continue Reading
As we reported here last month, on Dec. 15, 2020, a unanimous District of Columbia City Council approved a broad ban on noncompete agreements and “moonlighting” policies that would be among the most restrictive in the nation. On Jan. 11, 2021, Mayor Muriel Bowser signed and approved the Ban on Non-Compete Agreements Amendment Act of … Continue Reading
On Dec. 15, 2020, a unanimous District of Columbia City Council approved a broad ban on noncompete agreements and “moonlighting” policies that would be among the most restrictive in the nation. Since adoption of the Defend Trade Secrets Act in 2016, 11 states have enacted legislation regulating the use of noncompetes, including prohibiting them for … Continue Reading
Washington state employers that rely on noncompetition agreements will face a dramatically different legal landscape beginning Jan. 1, 2020, when a new noncompetition law takes effect. ENGROSSED SUBSTITUTE HOUSE BILL 1450 Key Elements of the New Law Under the new law, noncompetition agreements will be void and unenforceable against an employee under the following conditions: … Continue Reading
California employers and their legal counsel reasonably had assumed that California law distinguishes employee non-solicitation agreements from noncompetition agreements and that the former were enforceable. That assumption was based largely on a 1985 decision by the California Court of Appeal in Loral Corp. v. Moyes, 174 Cal. App. 3d 268, which enforced an agreement prohibiting a … Continue Reading
Last week, the Office of the New York Attorney General (NYAG’s Office) reached a settlement with WeWork, a New York City-based company that provides shared “co-work” spaces nationwide and internationally – and, notably, is one of the largest office tenants in New York City – regarding its use of non-compete restrictions with its employees. Recently, … Continue Reading