If you’ve been following along, you know that there have been 65 noncompete bills in 25 states so far this year1 — excluding the two pending federal noncompete bills, D.C.’s new law to ban most noncompetes, and any proposed bills that may be circulating, but have not yet been filed. Five bills (one in each of five states2) have died — leaving the current tally at 60 noncompete bills still pending in 21 states. The 21 states are Arkansas, Connecticut, Georgia, Illinois, Iowa, Louisiana, Massachusetts, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, and West Virginia.
In this series, we are providing details on all pending bills (and any new ones that are filed) — and we will be simultaneously updating our Changing Trade Secrets | Noncompete Laws page. Note that the summaries are (sort-of) color coded for the nature of the bill (ban, modification or establishment of standards, reversal of prior changes) and the groups for whom it creates exceptions or specific limitations (medical, low-wage workers, others).
Up today: Nevada.
Nevada has one pending bill, which, in relevant part, is as follows:
- AB.47 (“AN ACT relating to unfair trade practices; requiring certain notice to be provided to the Attorney General before the consummation of certain transactions involving a group practice or health carrier; revising provisions relating to proceedings instituted by the Attorney General under the Nevada Unfair Trade Practice Act; revising provisions relating to noncompetition covenants; providing a penalty; and providing other matters properly relating thereto”): Prefiled on November 18, 2020, the bill would ban noncompetes for employees “paid solely on an hourly wage basis, exclusive of any tips or gratuities” and impose attorney’s fees on an employer for either ignoring the ban or for prohibiting a former employee from servicing customers or clients who “voluntarily chose to leave and seek services from the employee,” as long as the employee did not solicit the customer or client and is otherwise complying with an applicable restrictive covenants.
The bill is pending before the Senate Commerce and Labor Committee.
Next up: New Hampshire
And, remember, if you want to see a summary of the current noncompete law in any state (and D.C.), please refer to our 50-state noncompete chart, which is updated on a continual basis, as the laws change.
*A huge thank you to Erika Hahn for all of her extraordinary help in tracking and monitoring all of the bills. Photo credit: tookapic.
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[1] The 25 states are: Arkansas, Connecticut, Georgia, Illinois, Iowa, Kentucky, Louisiana, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Vermont, Virginia, and West Virginia.
[2] The five states are: Kentucky, Mississippi, Nevada, Virginia, and Utah.