It is imperative for law professionals to keep abreast of changes in the legal landscape which could potentially impact employment agreements across the country. The recent developments that necessitate urgent attention include California’s SB 699, New York’s 203-f and the collaboration between the Federal Trade Commission (FTC) and the Department of Labor (DOL).
California has added a new addition to its non-compete law, known as SB 699. The statute declares certain covenants “not to compete” void under California law. This historic law change is a provision under the California Business and Professions Code Section 16600. Since this provision, Paul Hastings informs us that any contract that restrains a person from engaging in a lawful profession, trade, or business of any kind is considered void.
Paul Hastings also mentioned some statutory exceptions to this provision. It gives us insight into the range of circumstances these changes could affect. Unfortunately, specific details about these exceptions were not provided, therefore a thorough revised review of SB 699 is strongly suggested.
Alternatively, we have not yet received complete information about New York’s 203-f and the collaboration between the FTC and the DOL. As further news becomes available, we recommend keeping an eye on these developments, as they may have significant impacts.
In total, these events represent a swiftly evolving arena in employee mobility laws and regulations. Consequently, employers and legal professionals alike should ensure they remain updated on these issues to stay compliant and effectively guide their respective organizations.