State laws surrounding noncompetes continue to evolve as federal regulation remains stagnant.
Here are three recent noncompete developments across three states:
1. Legislation further amending noncompete policy in Washington has passed the state's Senate. The bill adds a range of protections to workers following problems that have arisen since the state moved to restrict noncompetes in 2019.
2. The Delaware Supreme Court ruled that financial services company Cantor Fitzgerald properly denied $9 million to former partners under noncompete agreements, overturning a lower court's ruling that said the firm's agreements limited career prospects for departing partners. The ruling likely will affect other lawsuits, according to Bloomberg Law, particularly those related to employment law, as Delaware is the corporate home to nearly 70% of Fortune 500 companies.
3. In January, California added a requirement for businesses that previously held employees to now-unenforceable noncompete agreements. The state allows noncompetes only in connection with the sale of a business, sale of equity in a business or ending of a partnership.