Noncompetes Are Under Attack: Important Developments to Consider

The Legal Intelligencer

PUBLISHED ON: February 28, 2024

In Pennsylvania and most states, covenants not to compete remain enforceable, subject to limitations on temporal and geographic scope and reasonableness. However, these frequently used provisions are under attack in several jurisdictions, and the Federal Trade Commission (FTC) has proposed a nationwide ban that Pennsylvania Attorney General Michelle Henry (along with 17 other attorneys general) supports.

In the last two years, states including Massachusetts, Colorado, Maryland and California have implemented or tightened bans on noncompete agreements, while New York almost did the same late last year until Gov. Kathy Hochul vetoed the bill. Other states have full or partial bans of older vintage.

If you advise employees or employers subject to noncompetes, you need to be aware of these important developments, particularly if your clients conduct their business in multiple states.

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