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This agreement prohibits the employee from entering markets or starting businesses that might cause the employee to gain a competitive advantage against their former employer. For instance, the employee might gain an advantage by exploiting trade secrets or other confidential information.
The New York State legislature has passed a bill banning almost all non-compete agreements for all workers, regardless of their salary level or job function.
There are now five states that outright ban virtually all non-competes, i.e., California, Colorado, Minnesota, North Dakota and Oklahoma. These laws have just very narrow exceptions, such as for certain sales of businesses.
In January 2023, the FTC undertook the directive from the executive order by announcing a Notice of Proposed Rulemaking that would ban all non-compete clauses in employer-employee contracts, subject to limited exceptions, including for non-competes entered as part of the sale of a business for a person holding 25% or ...
On June 20, 2023, the New York State Assembly passed A1278B, amending the state's current labor law to prohibit non-compete agreements for workers. The bill comes in the wake of the Federal Trade Commission's proposal for a nationwide ban on non-competes.
On June 20, 2023, the New York State Assembly passed A1278B, amending the state's current labor law to prohibit non-compete agreements for workers. The bill comes in the wake of the Federal Trade Commission's proposal for a nationwide ban on non-competes.
The law would not apply retroactively. The bill bans new non-competes entered into on and after the effective date of the law. We encourage clients to review their existing agreements and other trade secret protections to determine what impact the bill would have on future agreements.
California Reaches Across State Lines to Invalidate Employee Non-Compete Agreements. A new state law (SB 699) extends the reach of California's restriction on non-competes to contracts signed out of state.