On September 25, 2016, Governor Brown signed into law a new California Labor Code provision (Section 925) that is likely to have major repercussions for contracts with employees who live and work primarily in California.
NY Attorney General Schneiderman announced agreements with three separate companies in three different industries under which they each agreed to stop utilizing non-compete agreements that applied to a broad range of their employees.
The Nevada Supreme Court held that when a non-compete agreement extends beyond what is necessary to protect the employer’s interest, the agreement is wholly unenforceable and courts may not modify or “blue pencil” the contract to make it reasonable.
This morning, Massachusetts woke up to what is becoming a regular occurrence: the legislature was unable to pass a bill limiting the use of non-competition agreements in the Commonwealth, although it came the closest it has in years.
A growing number of states are tightening conditions on restrictive covenants. As of March 22, 2016, Utah has now joined their ranks with its “Post-Employment Restrictions Act,” HB 251.
California high court’s recent decision to review the Second District Court of Appeals’ ruling in trade secrets case sets the stage for a potential sea change in UTSA claims.