Following recent state legislative trends, as well as encouragement from the Biden Administration, the Federal Trade Commission (FTC) announced on January 5th a proposed rule (Proposed Rule) to ban non-compete agreements between most employers and employees in an effort to bolster both competition and innovation in the workplace. If adopted, the Proposed Rule would apply nationwide.
Effective October 1, 2022, Washington, District of Columbia (D.C.) employers will face substantial restrictions on the use of non-compete agreements and policies. Below is a summary of legislative action to date, as well as a review of the law’s key provisions.
Massachusetts has a new law that prohibits employers from requiring that certain types of employees sign non-competition or “forfeiture for competition” agreements (collectively “non-competition agreements”) and establishes minimum requirements that non-competition agreements must meet to be enforceable. The new law will take effect on October 1, 2018 and apply to agreements executed after that date.
