Category Archives: Noncompete Bill

Once again, we have resounding unanimity on the issues and recommendations to the FTC and DOJ, as they consider whether to regulate (and if so, how) noncompetes, nondisclosure agreements, and other restrictive covenants. 70 lawyers who practice extensively in the area of trade secret and restrictive covenant law agree: federal regulation is likely inappropriate, definitely premature, and, in any event, should be limited.
If you’ve been following along with this series of posts, you know that there have been 66 noncompete bills pending in 25 states this year — plus three pending federal noncompete bills, D.C.’s new law to ban most noncompetes, and a bill to rein in D.C’s new law before it becomes effective (which is anticipated to be in April 2022). Today’s post discusses New Jersey’s proposed noncompete legislation.
The D.C. Council held two proceedings related to its recent noncompete ban last week. During both, at-Large Councilmember Elisa Silverman recommended pushing back the implementation date of the new law to April 1, 2022. During the hearing, the Council received wide-ranging testimony about a potential amendment: some objective, verifiable input and some partisan rhetoric; some spot on and some inaccurate. Now we wait.
As of Friday (July 16, 2021), we again have competing approaches to federal legislation proposing limits on noncompetes. In addition to the previously reintroduced Workforce Mobility Act, proposing an outright ban, Senators Marco Rubio (R-Fla.) and Maggie Hassan (D-NH) have now reintroduced the Freedom to Compete Act to ban noncompetes for most workers who are not exempt under the Fair Labor Standards Act of 1938.
Nevada too has modified its noncompete law. Effective October 1, 2021, among other things, noncompetes cannot be used for hourly workers and employers will be at risk of paying attorney’s fees for violating certain aspects of the law.
So far this year, there have been 65 noncompete bills pending in 25 states — excluding the two pending federal noncompete bills, D.C.’s new law to ban most noncompetes, and any proposed bills that are circulating, but have not yet been filed. Five bills have died — leaving the current tally at 59 noncompete bills still pending in 21 states. Today’s post covers the three bills pending in Oregon.
So far this year, there have been 65 noncompete bills pending in 25 states — excluding the two pending federal noncompete bills, D.C.’s new law to ban most noncompetes, and any proposed bills that are circulating, but have not yet been filed. Five bills have died — leaving the current tally at 59 noncompete bills still pending in 21 states. Today’s post covers the three bills pending in New York, including New York’s late-breaking proposal to ban virtually all noncompetes.