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
Restrictive Covenants Under Fire: NJ Bill Proposes Immediate Ban on Non-Competes and No-Poach Agreements
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
Florida’s CHOICE Act: A New Era for Non-Compete and Garden Leave Enforcement
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
New Indiana Law Prohibits Physician-Hospital Non-Compete Agreements Effective July 1
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 Expands Non-Compete Ban: What Employers Need to Know
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
Reminder to Treat Your Valentine and Provide Notice to Employees of Non-Competes by February 14, 2024
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
A Step Too Far? Governor Hochul Vetoes New York Non-Compete Ban
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.
New California Law Makes Non-Compete Agreements Unlawful, Not Just Void
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.
New York Enacts Law Limiting Employee Assignment of Inventions
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
California Enacts Legislation to Support State’s Prohibitions on Employee Restrictive Covenants
On September 1, 2023, Governor Newsom signed Senate Bill (SB) 699, which buttresses current state law that voids contracts that restrain an employee from engaging in a lawful profession, trade, or business of any kind. California’s Business and Professions Code section 16600 states, “[E]very contract by which anyone is restrained from engaging in a