5 states cracking down on noncompetes

Here are five states that have passed laws limiting noncompete agreements since Jan. 1:

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1. Louisiana legislators passed a bill limiting the length and geographical scope of noncompetes for specialty and primary care physicians. Senate Bill 165, which goes into effect Jan. 1, 2025, required noncompetes to expire three years for primary care physicians or five years for other physicians from the effective date of the initial agreement. 

2. Pennsylvania inked a law limiting noncompete agreements for certain healthcare providers. The law applies to physicians, osteopathic doctors, certified registered nurse anesthetists, certified registered nurse practitioners and physician assistants.

3. Maryland Gov. Wes Moore signed a law prohibiting noncompetes for healthcare professionals April 25. The Maryland law prohibits noncompetes for individuals who are required to be licensed under Maryland’s Health Occupations Article — which includes physicians, physician assistants, nurse practitioners, nurses, dentists, pharmacists, psychologists and optometrists — are employed in a position that provides direct patient care and earn equal to or less than $350,000 a year. 

4. A bill amending Washington’s noncompete policy was signed into law by Gov. Jay Inslee on March 13. The law, which adds protections for workers following instances that have arisen since the state moved to restrict noncompetes in 2019, goes into effect June 6.

5. California added a requirement for businesses that previously held employees to now-unenforceable noncompete agreements. The state allows noncompetes only in connection with the sale of a business, sale of equity in a business or ending of a partnership.

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