In case you were wondering what states have changed their noncompete laws in the past decade or so, we have created a list with links to more information about each of the changes.
As we ponder the best ways to protect trade secrets today, it’s good to have a quick reminder that this has been a long-term issue. So, we’ll take a two-part tour of trade secret law and developments from before Roman times to now.
A decision from last week, juxtaposed against two other recent decisions, highlights that the law of no-recruit agreements is, like the law of noncompetes, “a sea — vast and vacillating, overlapping and bewildering. One can fish out of it any kind of strange support for anything, if he lives so long.”
Knowing the noncompete and trade secret laws across 50 states, plus D.C., is no easy task. And keeping track of the flood of changes in recent years makes it all the more difficult. Unfortunately, it’s not something you can ignore. Because of this, we have created several resources that make the task easier. We hope you find them helpful.
D.C.’s upcoming noncompete law says that it will apply as of October 1, 2022. But it is not scheduled to become “effective” until November 10, 2022. Where does that leave us?
Just as the D.C. Council was poised to walk back its 2021 unfunded noncompete ban and permit noncompetes for most people earning over $150,000, the D.C. Council amended the amendment to exempt broadcast industry employees, regardless of how much they earn. The final amendment is now with the Mayor.
In 2015, Hawai‘i passed legislation that banned the use of noncompetes and no-recruit agreements for employees of technology businesses. Seven years later, the Hawai‘i Supreme Court decided more changes were appropriate. See what it did.
D.C. is on the verge of walking back its noncompete ban, and putting in place a $150,000 wage threshold. The change is likely to be final in the next month and take effect October 1, 2022. Are you ready? You have some time, but you won’t want to miss the deadline.
In case you were wondering what states have changed their noncompete laws in the past decade or so, we have created a list with links to more information about each of the changes.
Newly updated criminal penalties for a violation of noncompete law are not enough for Colorado — or maybe they’re too much. Colorado has made sweeping changes to its noncompete law, while scaling back (or at least cleared up ambiguity around) potential criminal liability for using unenforceable noncompetes.
Were you wondering where Wyoming stands on a potential noncompete ban? You won’t find it on the legislature’s website or Legiscan. But, as it turns out, Wyoming is considering a ban, as well as a more limited restriction.
Over the past several years, there have been changes to the noncompete laws in 24 states — plus D.C. In some states (such as Illinois, Oregon, and Nevada), there were even multiple changes to the law over the last few years.
To keep track of it all, we’ve prepared a map as a visual supplement to our Changing Trade Secrets | Noncompete Laws page.
Our 50-state (plus DC) chart of noncompete laws has been updated for Illinois’ and Nevada’s recent amendments to their noncompete laws. It is available here.
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.
Two new noncompete laws in the past week or so: Illinois and Nevada. Discussed below, Illinois will have a completely overhauled noncompete law starting in January 2022 and Nevada will have tweaks to its law starting in October of this year.