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

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

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

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

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

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.

Having initially enacted a total ban on non-compete agreements that went so far as to ban prohibitions against moonlighting with competitors, the District of Columbia City Council has significantly changed the law’s scope. Details of the amended D.C. “ban,” including how the act permits non-compete agreements for “highly compensated employees,” are laid out the article,

Governor Jared Polis has now signed HB 22-1317, significantly limiting the enforceability of non-compete agreements executed after August 10, 2022 — the law’s effective date — for employers with employees working or living in Colorado. For details of, and a brief Q&A on, the new law, see the articles Colorado Poised to Further Limit

On May 2, 2022, the New Jersey State Assembly introduced Assembly Bill (AB) 3715 that, if enacted, would significantly limit the use and enforceability of certain restrictive covenant provisions, while mandating additional procedural requirements. AB 3715 is similar to prior bills introduced in the New Jersey legislature in recent years, and part of the ongoing