Is It Time to Reconsider Your Non-Compete Policy? It Might Be If You Employ Low-Wage Workers
Over the course of the past several years, several states have banned or severely restricted the ability of businesses to bind low-wage workers to post-employment restrictive covenants, points out a Seyfarth Shaw client alert.
“While such legislation trickled out over the last several years, 2019 has seen five additional states enact prohibitions on utilizing non-compete agreements for certain low-wage employees, with at least seven other states and the District of Columbia considering similar non-compete legislation,” write the authors, Justin K. Beyer and Daniel P. Hart.
Because these new laws and other developments in restrictive covenant law over the past year may require changes to a company’s template restrictive covenant agreements, companies should consider reviewing and revising their template agreements more broadly by the end of the year, the authors advise.
