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D.C. City Council Blinks, Rolls Back Non-Compete Ban

Having initially enacted a total ban on non-compete agreements that went so far as to ban prohibitions against moonlighting with competitors, the District of Columbia City Council has significantly changed the law’s scope. Details of the amended D.C. “ban,” including how the act permits non-compete agreements for “highly compensated employees,” are laid out the article,...
August 12, 2022

Colorado Governor Signs Non-Compete Bill, Further Limiting Use of Agreements and Increasing Non-Compliance Penalties

Governor Jared Polis has now signed HB 22-1317, significantly limiting the enforceability of non-compete agreements executed after August 10, 2022 — the law’s effective date — for employers with employees working or living in Colorado. For details of, and a brief Q&A on, the new law, see the articles Colorado Poised to Further Limit Use of...
June 28, 2022

New Jersey Legislature Continues Efforts to Significantly Limit Restrictive Covenants

On May 2, 2022, the New Jersey State Assembly introduced Assembly Bill (AB) 3715 that, if enacted, would significantly limit the use and enforceability of certain restrictive covenant provisions, while mandating additional procedural requirements. AB 3715 is similar to prior bills introduced in the New Jersey legislature in recent years, and part of the ongoing...
May 20, 2022

Colorado Senate Passes Non-Compete Bill to Further Limit Use of Agreements and Increase Non-Compliance Penalties

The Colorado Senate recently passed House Bill 22-1317 which, if enacted into law, would significantly limit the enforceability of any non-compete agreements executed after the law’s effective date for employers with employees working or living in Colorado. If Governor Polis signs the proposed legislation, it could go into effect as early as August 10, 2022....
May 18, 2022

D.C. Non-Compete Ban Applicability Date Postponed to October 1, 2022

As reported in a web article prepared by our D.C. colleagues Matt Nieman, Joe Schuler, Caroline Cheng, and Alyssa Testo, found here, the District of Columbia Council again has deferred the “applicability date” of the D.C. Non-Compete Ban, this time to October 1, 2022. We previously reported about this law, and the first deferral of...
March 25, 2022

Ohio Appeals Court Reinforces a Trial Court’s Ability to Modify Noncompete Agreements

In MetroHealth Sys. v. Khandelwal, 2022-Ohio-77, Ohio’s Eighth District Court of Appeals affirmed a trial court’s modification of a noncompete agreement between a hospital and a physician formerly employed by the hospital. Both courts reasoned that modifying the agreement, rather than striking it, protected the hospital’s interest. The disputed noncompete agreement provided that the defendant...
February 1, 2022

Reaction and Response to the FTC & DOJ Workshop on Labor Market Competition

The Federal Trade Commission (FTC) and the Department of Justice (DOJ) hosted a virtual workshop on December 6-7, 2021, bringing together agency representatives, lawyers, economists, academics, and other experts to discuss issues affecting competition in the labor market (“Workshop”). We attended the Workshop virtually and co-signed a response letter (drafted by our friends Russell Beck and...
December 22, 2021

Florida Decision Highlights Strategy for Immediately Appealing Denial of Temporary Injunction

In many non-compete cases, the employer seeks a temporary injunction at the outset of the case to prevent further harm. If the employer loses that motion, the case usually settles or proceeds to discovery as in a standard civil action. However, there can be another option—immediate appeal. A recent Florida appellate decision demonstrates why this...
December 21, 2021

New Bills Seek to Void Restrictive Covenants for Employers with Vaccine Mandates

Employers in the U.S. are facing regulatory upheaval on multiple fronts. The federal government has taken up a new interest in potentially limiting the applicability of restrictive covenants, such as non-compete agreements. Meanwhile, the Occupational Safety and Health Administration (OSHA) has issued an Emergency Temporary Standard (ETS) (currently stayed by the Fifth Circuit) requiring employers...
November 18, 2021

Podcast: Enforceability of Physician Non-Compete Agreements

Including non-compete covenants in physician employment and shareholder agreements is common practice. Whether they are legally enforceable as drafted varies from state to state. In this podcast, Jackson Lewis attorneys explore how hospital systems and medical groups can protect their goodwill and legitimate business interests.
October 14, 2021