Noncompete forecast shows tough weather for employers | McDermott

Noncompete forecast shows tough weather for employers

Overview


As introduced in a prior alert, states across the US are reshaping noncompete laws with varying approaches. Colorado, Maryland, Texas, and Nevada have introduced or advanced legislation that significantly restricts noncompetes for healthcare professionals. In contrast, Florida and Kansas have enacted employer-friendly laws that offer more flexibility and predictability. These state-by-state shifts create a patchwork of rules that make it riskier for employers to rely on boilerplate noncompete agreements. Employers should tailor restrictive covenants to local laws, reexamine existing contract templates for their employees, revisit reliance on choice-of-law clauses, and consult legal counsel to ensure compliance with the evolving landscape.