non-compete laws

Recent Developments in Non-Compete Laws

Non-compete laws serve the purpose of protecting confidential information and preventing unfair competition. In a non-compete clause or covenant not to compete, an employee agrees that at the end of his or her employment they will not work for or start a similar business in competition with their former employer. The restrictive nature of non-compete agreements have long been debated. In fact, most states have geographic, time, and reasonableness limitations on what constitutes an enforceable covenant not to compete.

The Impact of Newly Enacted Non-Compete Laws

Effective January 1, 2020, several states have passed new legislation affecting the enforceability of non-compete agreements. Experienced business lawyers can guide employers and employees though the various state laws and offer advice on the impact of newly enacted non-compete laws.

No Non-Compete Clauses for Lower Wage Employees

Many states recently passed legislation limiting non-compete clauses for lower wage-earning employees. Maine, New Hampshire, Rhode Island, Maryland, and Washington became the most recent states to pass such legislation. While each law varies slightly, the concept is the same: Lower wage-earning employees are not receiving enough of a financial benefit from their employer to justify restricting their ability to change employers within a similar industry.

As with any new legislation, interpretation of intent and scope is left primarily with the courts. For example, labor and employment lawyers analyzing Washington’s statutory language suggest that courts may void agreements entered into prior to January 1, 2020 by retroactive application of the statute. Employers and employees will have to wait and see how courts apply the new non-compete laws throughout the coming months.

Agreement Provided at Termination

Other newly passed legislation includes Oregon’s new requirement regarding non-competes. Employers must provide employees with a signed, written copy of his or her non-competition agreement within 30 days of termination. Failure to properly provide the agreement will render the agreement voidable and unenforceable in the state of Oregon. Without a doubt, employers want terminated employees to abide by the terms of their non-compete agreement. Therefore, they will usually provide a copy upon request. The shift in Oregon law puts an active burden on the employer with sweeping consequences.   

Labor and Employment Lawyers Can Help With Claims Regarding Non-Compete Laws

Employment lawyers, like the ones at Rogge Dunn Group, understand new legislation and its impact on employers and employees alike. The employment lawyers at Rogge Dunn Group are able to draft covenants not to compete to protect our clients’ trade secrets and other intellectual property. When claims arise concerning violation of a covenant not to compete, Rogge Dunn Group lawyers can quickly investigate the facts, evaluate options, and take the necessary actions. Moreover, our negotiated solutions allow our clients to accomplish their business objectives and avoid the courtroom. Some disputes, however, must be litigated. Our attorneys regularly obtain and defend against temporary restraining orders and preliminary injunctions regarding non-compete agreements.

MEDIA

Rogge Dunn Group Represents Ex-CFO Allegedly Fired for Whistleblowing
READ MORE
Rogge Dunn Interviewed on WFAA Regarding COVID-19 in the Workplace
READ MORE
Aug. 20, 2020: Rogge Dunn to Speak in Live CLE Webcast on How To Manage and Resolve Complex Commercial Disputes
READ MORE
Big Changes for Title IX: New Title IX Requirements
READ MORE
Fired for Following the Law? Wrongful Termination Cases During COVID-19
READ MORE
COVID-19 Employment Rights: Dallas Business Journal Q&A with Rogge Dunn
READ MORE
Blue Angels Fly By Our Office Patio
READ MORE
Recent Developments in Non-Compete Laws
READ MORE
Rogge Dunn Interviewed on KHOU 11 Regarding the Requirements for Unemployment Benefits
READ MORE
Rogge Dunn Addresses Workers’ Concerns on KPRC 2 News
READ MORE
Star Local Media Interviews Rogge Dunn on Client’s Coronavirus-Related Wrongful Termination Lawsuit
READ MORE
Joshua Iacuone on NBC DFW: Iacuone and Dunn Represent Employee Fired For COVID-19 Shelter-In-Place Compliance
READ MORE
COVID-19 Employer and Employee Rights: Texas Lawyer Q&A With Rogge Dunn
READ MORE
Rogge Dunn on WFAA Regarding COVID-19 Employment Issues
READ MORE
COVID-19 Guidelines for Restaurants
READ MORE
Rogge Dunn Weighs In On Kera News Radio Segment About Janitor Safety During COVID-19
READ MORE

Contact Us Today!

Contact us to learn how we can help answer your legal questions.

FILL OUT FORM