Texas Governor Greg Abbott has signed SB 1318 into law, introducing significant new constraints on non-compete agreements in the healthcare sector. Effective September 1, 2025, the law limits physician and healthcare practitioner non-competes to one year in duration and a five-mile geographic scope. It also mandates buyout provisions for all such agreements and renders non-competes void if a physician is terminated without good cause. These changes apply to any agreements entered into or renewed on or after the effective date. Read more.

New Jersey is poised to join the growing list of jurisdictions taking steps to curtail the use of restrictive covenants in employment agreements. A newly proposed bill (S4385/A5708) would impose a near-total ban on non-compete clauses—except for a narrow category of “senior executives”—and would also prohibit no-poach agreements between employers and workers. Read more.

On April 24, the Florida Legislature passed the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act. If signed into law, it will take effect on July 1, 2025. The CHOICE Act represents one of the most significant overhauls to Florida’s restrictive covenant laws in recent years, introducing new tools for employers to safeguard their business interests. Read more.

Indiana is making strides to enhance physician mobility with a new amendment to its 2020 Physician Non-Compete Statute (Ind. Code § 25-22.5-5.5). This latest change, signed into law by Governor Mike Braun on May 6, 2025, broadens the limitations on non-compete restrictions to encompass all physicians employed by hospitals or related entities. The new law, Senate Enrolled Act No. 475, will come into effect on July 1, 2025, aligning Indiana with the growing national trend towards greater freedom for physicians to move between employers. Read more.

Virginia has taken a significant step in tightening restrictions on employment non-compete agreements. Governor Glenn Youngkin recently signed a bill that broadens the definition of low-wage employees under the state’s existing prohibition on covenants not to compete, Va. Code Ann. § 40.1-28.7:8. Starting July 1, 2025, this new statute will prevent employers from entering into non-compete agreements with employees classified as non-exempt under the Fair Labor Standards Act (FLSA). Read more.

On April 23, 2024, the Federal Trade Commission (FTC) issued its final rule prohibiting all non-compete agreements for all employees at all levels, with only extremely limited exceptions. The FTC’s much-anticipated action follows its January 2023 proposed rule and its review of over 26,000 public comments. Though approved 3-2 along party lines by the FTC, the final rule is not yet effective and legal challenges already are looming. Read more.

In October 2023, California’s Governor signed Assembly Bill (AB) 1076 which added the new Business & Professions Code §16600.1, making it unlawful to impose non-compete clauses on employees – which contractual restrictions already are void under Business & Professions Code §16600.

Under AB 1076, employers must notify current employees and former employees (employed after January 1, 2022), that any noncompete agreement or noncompete clause contained within an agreement the current or former employee signed is void unless the agreement or clause falls within one of the statutory exceptions set forth in Business and Professions Code section 16600, et seq.

Read the full article on Jackson Lewis’ California Workplace Law Blog.

New York Governor Kathy Hochul vetoed Senate Bill S3100A, a bill passed by both houses of the legislature in June, that would prohibit all non-compete agreements. This is a significant and interesting end to a year of upheaval in the world of non-compete agreements and other restrictive covenants. Read more.

California’s Governor signed Assembly Bill (AB) 1076 on October 13, 2023, which adds new Business & Professions Code §16600.1, making it unlawful to impose non-compete clauses on employees – which contractual restrictions already are void under Business & Professions Code §16600. Read more.

On September 15, 2023, New York Governor Kathy Hochul signed into law a new section of the New York Labor Law limiting the assignment of inventions by employees to their employers. Specifically, Section 203-f of the Labor Law renders unenforceable provisions in employment agreements that require employees to assign certain inventions to their employer which were developed using the employee’s own property and time. The new law became immediately effective upon Governor Hochul’s signing.

New Labor Law Section 203-f bans the enforcement of invention assignment agreements that entitle employers to intellectual property developed by employees entirely on their own time without using their employer’s equipment, supplies, facilities, or trade secret information; unless the invention relates at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer, or if the invention results from any work performed by the employee for the employer.
Section 203-f further provides that a requirement in an employment agreement that an employee assign, or offer to assign, any of his or her rights in an invention developed on his or her own time to an employer is against New York State public policy and shall be unenforceable. Notably, Section 203-f does not state that such a provision renders an entire employment agreement unenforceable if it contains such a provision and does not create a private right of action.

The new bill was originally sponsored by New York State Senator Jessica Ramos from the 13th Senate District. State lawmakers approved the legislation in June 2023 after other States, including California, Illinois, New Jersey, and Nevada approved similar protections.

In fact, the bill provides protections similar to California’s Labor Code Section 2870. However, the New York legislation differs from its California counterpart in that California Labor Code Section 2870 includes language that explicitly allows employers to require employees to disclose all inventions employees develop during the term of their employment. California also places a burden on employees to prove that their inventions are not covered by their employee invention assignment agreement.

As a result, employers should review their employment agreements in New York to ensure they comply with the new law and draft any new agreements accordingly. Jackson Lewis attorneys continue to monitor further developments. If you have any questions, the Jackson Lewis Restrictive Covenants, Trade Secrets and Unfair Competition practice group members are available to assist.