For those following noncompete and trade secrets legislative activity around the country, I just updated our Changing Trade Secrets | Noncompete Laws page. (This is a never-ending task with so many states thinking about changing – or actually changing – their noncompete and trade secrets laws, so check back regularly.)
The updates to the page include the following:
- Maine: A bill (LD 487) to limit noncompetes that flew under the radar was short-lived; it was introduced in February, replaced in its entirety in April, and died in May.
- Maryland: No legislative update since the March 24 cancelation of the March 29 hearing on the bill (HB.506) passed by the House.
- Michigan: On June 14, a bill (House Bill 4755) was introduced to require notice of the requirement of a noncompete and to ban the use for low income employees. The bill was referred to committee and remains there.
- New York: A few bills (House Bill 1139, Senate Bill 4610, and a City Council bill, Int. No. 1663) were recently introduced to ban the use of noncompetes for low income workers.
- Oregon: A bill (Senate Bill 949) was signed into law that, as of January 1, 2018, Oregon will ban the use of noncompete, no-raid agreements (i.e., employee nonsolicits), and customer nonsolicitation agreements for home care workers.
- Washington: HB 1967 was referred to the Senate Committee on Commerce, Labor & Sports, where the majority recommended approval. On April 23, the was returned to the House Rules Committee for third reading, where it remains. A second bill, Senate bill SB 5756 (to ban the use of noncompetes for anyone earning less than $55,000 per year (adjusted annually for inflation)), has sat in the Committee on Commerce, Labor & Sports since February with no action since a public hearing on February 15.
- West Virginia: On April 26, the Governor of West Virginia signed into law a bill (Senate Bill 402) that bans certain types of physician noncompete agreements. (Thanks Steptoe & Johnson for the update.)
For the details, see our Changing Trade Secrets | Noncompete Laws page.