States, FTC continue to target noncompetes: 3 updates

Noncompete clauses continue to be the target of lawsuits and action by state legislatures. 

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Here are three moves since Sept. 1 that involve noncompetes:

1. In September, California passed a bill prohibiting employers from entering into noncompetes with California employees regardless of the state the employee is working in. 

2. Maryland employers are barred from making noncompete provisions for certain employees. The law, which went into effect Oct. 1, prohibits noncompete contract provisions for employees who earn equal to or less than 150 percent of the state’s minimum wage.

3. The 7th Circuit Court of Appeals remanded a district court’s dismissal of an antitrust case that could have implications for noncompete agreements. The decision could indicate that courts may be wary to dismiss no-hire and nonsolicitation cases like this at an early stage, according to Sept. 8 JDSupra article from law firm Shearman & Sterling.

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