Trade Secret Protection & Restrictive Covenants
Related Insights
07.10.2023
Client Advisories
New York Aims to Become the Fifth State to Join the Non-Compete "Ban" Wagon
The New York State Assembly reconvened last month and passed a bill (A01278B) banning all non-compete agreements which, if enacted, would prohibit almost all new employee non-compete agreements, regardless of salary level or job function. Strikingly, the proposed legislation does not contain an exception for situations involving the sale of a business. The law will be applicable to contracts entered into or modified on or after the law’s effective date and does not void existing non-compete agreements. The bill and its Senate counterpart (S3100A) are currently in limbo, awaiting further action from New York Governor Kathy Hochul, who may request the bills be sent to her for execution, or instead request further amendments. If signed, the law would take effect 30 days thereafter.
06.15.2023
In the News
Thomas Muccifori Quoted in the Bloomberg Article, "States Add to ‘Fire Hose’ of Noncompete Issues Vexing Employers"
A company’s ability to block employees from going to work for a competitor keeps getting narrower and less legally certain, as state limits on restrictive employment contracts spread alongside federal scrutiny. Minnesota became the fourth state to ban virtually all employee noncompetes and New York may soon be following. Thomas Muccifori, Chair of Archer's Trade Secret Protection and Non-Compete Group, has been closely monitoring other efforts to ban employment related non-compete covenants so that our multi-state clients can be aware of changes in state law and plan accordingly. Tom was recently quoted in Chris Marr's Bloomberg article, "States Add to ‘Fire Hose’ of Noncompete Issues Vexing Employers." When asked his thoughts on the non-compete debate, Tom stated, “it’s really a seismic change in the landscape of these agreements happening at the state level and at the regulatory level.”
05.22.2023
Client Advisories
Another One Bites the Dust - Minnesota Becomes Fourth State to Ban All Future Employment Non-Compete Agreements
The Minnesota Legislature last week passed a new law rendering void and unenforceable all future covenants not to compete with an employee or independent contractor, except for agreements entered into in connection with the sale or dissolution of a business. When signed into law by the Minnesota Governor, Minnesota will join California, Oklahoma and North Dakota, as states to outright ban employment related non-compete agreements ("noncompetes"). We’ve previously written about similar efforts underway in other states to do the same.