Erik W. Weibust, Member of the Firm in the Litigation & Business Disputes and Employment, Labor & Workforce Management practices, in the firm’s Boston office, was quoted in the Bloomberg Law Daily Labor Report, in “Battles Over Noncompete Clauses Poised to Heat Up in Statehouses,” by Danielle Kaye. (Read the full version – subscription required.)
Following is an excerpt:
The US Federal Trade Commission’s nationwide ban on noncompete clauses is set to spur more state action to limit the restrictive covenants, adding momentum to an already expanding landscape of these laws.
The national effort to ban noncompete provisions that prohibit workers from switching jobs within an industry has already prompted some states to change their laws—and more are likely to follow suit, antitrust enforcers and employment lawyers say. …
The FTC’s national ban, voted on last week, is the most aggressive push yet by the Biden administration to loosen the terms of employment contracts, but is already facing lawsuits. The uncertain legal future of the FTC rule means state laws are still the only restrictions in play, and clients must comply with them, lawyers and enforcers say. …
Uniform Compliance
The rapidly shifting landscape of state limits on noncompetes creates compliance challenges for companies operating in multiple jurisdictions, employment and trade secret lawyers say.
California this year expanded its restrictions to declare the state’s courts won’t enforce noncompetes even if they were signed in other states. At least 11 states plus the District of Columbia ban employers from imposing noncompetes on workers whose income falls below certain pay thresholds or who qualify as hourly, non-exempt workers under federal wage law. …
Erik Weibust, a trade secrets attorney at Epstein Becker Green, said he’s telling clients to continue focusing on developments in noncompete restrictions at the state level.
“Our advice to clients is comply with state law, and understand the nuances of state law,” Weibust said.
