Changes Brewing for Enforceability of Non‑Compete Provisions

Until recently, common law jurisprudence and legislation regarding non-competition agreements related to employment matters seemed settled. Now, however, the New York State legislature has passed a bill that would ban virtually all employment-related non-competes (New York Bill), and the FTC has announced its intention to promulgate a rule broadly banning non-competes (Proposed Rule). Those proposals represent a fundamental shift in the law governing restrictive covenants in New York. This article analyzes the New York Bill and the Proposed Rule, raises questions about their implications, and explores how they might impact different aspects of non‑compete agreements. For more on the Proposed Rule, see “What Employers Should Know About the FTC’s Proposed Ban on Non-Compete Provisions” (Mar. 8, 2023).

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