Non-Compete Agreement Landscape Continues to Shift

Current Landscape

The legal landscape for non-compete agreements continues to evolve rapidly. Multiple states have enacted new restrictions or outright bans, and employers must ensure their restrictive covenant practices comply with the laws in every jurisdiction where they operate.

What's Changing

Several states have recently:

• Banned non-competes entirely for most employees
• Limited non-competes to employees above certain salary thresholds
• Required advance notice or additional consideration
• Imposed penalties on employers who use unenforceable non-competes
• Narrowed the definition of enforceable restrictive covenants

Practical Steps for Employers

1. Inventory existing agreements: Identify all employees with non-compete or restrictive covenant agreements
2. Review enforceability: Assess each agreement against current law in the relevant jurisdiction
3. Update templates: Revise standard agreements to comply with the most restrictive applicable law
4. Consider alternatives: Non-solicitation and confidentiality agreements may provide adequate protection with fewer legal restrictions
5. Train hiring managers: Ensure managers understand what they can and cannot require
6. Document legitimate interests: Be prepared to demonstrate the business interest each agreement protects