Legislation banning employment noncompete agreements was approved last week by the New York State Assembly and is now awaiting the governor’s signature.
July 9, 2021, Executive Order EO issued by President Joe Biden did not change the law of restrictive covenants directly. Rather, it encouraged the Federal Trade Commission FTC to act to regulate the unfair use of non-compete clauses and other restrictive covenants.
California's voiding of many non-compete agreements puts employers at a disadvantage with respect to employee recruitment. Employers in other states are free to hire away employees in California while California employers may be subject to enforceable non-compete agreements.
California bill AB 747 attorneys providing that it is cause for suspension, disbarment, or other discipline for an attorney to enter into noncompete with an employee or prospective employee, present an employee or prospective employee as a term of employment.