Noncompetition Agreement Restrictions

 The state of California has had a statute that voids a noncompetition clause or agreement that restrains a person from participating in a profession, trade or business, with very limited exceptions for a while---other states are following suit.  

 

States such as Connecticut, Illinois, Kentucky, Louisiana, Missouri, Rhode Island, and Utah are introducing bills that would make it difficult to bind a prospective or current employee with such agreements.

 

New York city is also considering legislation related to noncompetition agreements---prohibiting non-compete agreements with low wage workers and the use of restrictive covenants with freelance workers.

 

Source: JD Supra, received on March 29, 2024.