Non-Compete Agreements

Thomson Reuters Practical Law has released the 2022 update to “Non-Compete Laws: Illinois,” a Q&A guide to non-compete agreements between employers and employees for private employers in Illinois, co-authored by our colleagues Peter Steinmeyer and David Clark, Members of the Firm in the Employment, Labor & Workforce Management practice.

Continue Reading Illinois Non-Compete Laws: Q&A for Employers, 2022 Update

Perhaps we were wrong. Or perhaps we were just not thinking creatively enough. After President Biden issued his “Executive Order on Promoting Competition in the American Economy,” in which he “encourage[d]” the Federal Trade Commission (FTC) to “consider” exercising its statutory rulemaking authority “to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility,” we assumed that Lina Khan, the 33-year-old Biden-appointed Chair of the FTC (and a vocal opponent of noncompetes), would take the torch and propose a Rule prohibiting, or at the very least severely limiting, the use of noncompetes. And she may still do so.

Continue Reading Companies That Use Noncompetes Face Increased Risk of Government Action Following FTC’s Unilateral Expansion of Its Enforcement Powers

Employers with employees in the District of Columbia have until Monday, October 31, 2022, to comply with a specific notice provision contained in the D.C. Non-Compete Clarification Amendment Act of 2022 (B24-0256) (the “Amendment”).

Continue Reading D.C. Employers: Have You Complied With the Non-Compete Clarification Amendment Act?

Now on Spilling Secrets, our podcast series on the future of non-compete and trade secrets law:

Non-compete agreements are generally unenforceable against lawyers, but there are some exceptions. In this episode, hear about employer options for restrictive covenants, including non-competes, non-solicits, and confidentiality agreements, for both in-house and outside lawyers.

Continue Reading Spilling Secrets Podcast: Non-Compete Agreements for In-House and Outside Lawyers

Now on Spilling Secrets, our podcast series on the future of non-compete and trade secrets law:

An employer often overlooks training employees on what their restrictive covenant means and how to honor their confidentiality, non-competition, and non-solicitation obligations. But this type of training can be critical for employers in protecting trade secrets and avoiding litigation in the future.

Continue Reading Spilling Secrets Podcast: Employers – Train on Trade Secrets

Now on Spilling Secrets, our podcast series on the future of non-compete and trade secrets law:

Two and a half years into the pandemic, it appears that remote work is here to stay, to varying degrees, in virtually all industries. How do restrictive covenants work in this remote work era? In this Spilling Secrets episode, hear how employers are addressing restrictive covenant concerns now that employees may be located anywhere.

Continue Reading Spilling Secrets Podcast: Restrictive Covenants in the Remote Work Boom

Welcome to Spilling Secrets, a new monthly podcast series on the future of non-compete and trade secrets law.

If you’re hiring from a competitor amid the Great Resignation, one of your top priorities is not getting sued.
Continue Reading Spilling Secrets Podcast: Hiring from a Competitor? Don’t Get Sued.

Washington, D.C. employers will not need to scrap all their non-compete agreements after all.  On July 12, 2022, the D.C. Council (the “Council”) passed the Non-Compete Clarification Amendment Act of 2022 (B24-0256) (the “Amendment”), which among other things, tempers the District’s near-universal ban on non-compete provisions to permit restrictions for highly compensated employees.  For further analysis on the original D.C. Ban on Non-Compete Act, please see our previous articles here and here.

The Council delayed the initial ban several times in response to feedback from employer groups.  However, barring an unlikely veto or Congressional action during the mandatory review period, the amended ban will take effect as of October 1, 2022.  We detail the key revisions to the ban below.

Continue Reading Washington, D.C. Scales Back Ban on Non-Competes

As we previously reported, the Colorado General Assembly passed a bill in May making substantial amendments to Colorado’s noncompete statute, C.R.S. § 8-2-113. Governor Jared Polis signed the bill on June 8, 2022, meaning the amendments will go into effect at 12:01 a.m. on August 10, 2022, which is only four weeks away. That may sound like a long time, but it will go by quickly.

Continue Reading Only One Month Until Dramatic Changes in Colorado’s Restrictive Covenants Law

We wrote in January about a small change in Colorado law that could have large effects because it criminalized the enforcement of noncompete agreements that violate its general noncompete statute, C.R.S. § 8-2-113. Well, the Colorado General Assembly is at it again. Passed by the Colorado Senate on May 3, 2022, and now awaiting Governor Jared Polis’s signature, HB 22-1317 would further amend C.R.S. § 8-2-113 to substantially limit the enforceability of noncompetes and other restrictive covenants for any workers other than those who are “highly compensated,” as well as imposing new, stringent notice requirements and penalties for noncompliance. This
Continue Reading Colorado Continues Its Crackdown on Restrictive Covenants