ANALYSIS: New Noncompete Laws Signal Pro-Worker Trend

Employers have historically used noncompete agreements to prevent departing employees from competing with their former employers, but there’s a growing trend to ban these agreements, particularly for lower-wage workers.

Most recently, Colorado passed such a bill, which is expected to be signed into law and become effective this summer. California, North Dakota, Oklahoma, and the District of Columbia (effective October 1, 2022) ban most or all noncompetes, and many other jurisdictions have slowly chipped away at the use and coverage of noncompetes. The Biden Administration has also indicated that regulating noncompete agreements is a priority. ...