More than two years into the pandemic, most employers are familiar with many of the challenges raised by engaging remote employees. However, one often overlooked issue is whether noncompetition agreements vetted for in-state workers are enforceable against remote, out-of-state employees.
The enforceability of noncompete and nonsolicit agreements varies wildly from state to state. In California, noncompete provisions are famously banned, while in Florida noncompete provisions are permitted if properly drafted. Even where states permit noncompetition agreements, there are state-specific nuances that make a broad noncompetition provision hard to roll out for all employees.
The law in this area is also rapidly changing. Some states have recently passed laws limiting or barring noncompete provisions or agreements, particularly for lower-level employees.
On January 1, 2022, a new Illinois law went into effect that barred employers from entering noncompetition agreements with employees initially earning less than $75,000 per year. That same law bars not-to-solicit covenants with any employee, unless that employee's earnings initially exceeded $45,000 per year. Employers are also prohibited from entering into covenants not to compete or solicit with employees who have been terminated for reasons related to COVID-19, unless properly compensated. Even for employees who don't fall into these exceptions, covenants not to compete or solicit are illegal unless (1) the employee receives...
Two Texas clinics under the same ownership have agreed to pay the government $20 million to settle False Claims Act allegations that they lied about COVID-19 billing, according to the U.S.... To vi...