California and New York recently enacted statutory restrictions aimed at “stay-or-pay” arrangements: California AB 692 (Cal. Bus. & Prof. Code § 16608 & Cal. Lab. Code § 926) and the New York Trapped at Work Act (N.Y. Lab. Law art. 37, §§ 1050-1055), respectively. Such arrangements are contractual provisions that, while falling short of a
Forfeiture Clauses Triggered by Non-Solicitation Breaches Do Not Fall Under Massachusetts Noncompetition Agreement Act
Enacted in 2018, the Massachusetts Noncompetition Agreement Act (the “Act”) restricted employers’ use of non-competition agreements in a variety of ways, including requiring compensation during the post-employment restricted period and prohibiting enforcement against non-exempt employees or those terminated without cause. While the Act explicitly excludes covenants not to solicit from its definition of noncompetition agreements
FTC Signals Forthcoming Non-compete Enforcement Actions
On September 4, 2025, the FTC announced an enforcement action and proposed settlement with Gateway Pet Memorial Services (the “Company”), a pet cremation company, over the Company’s overuse of post-employment non-competes with certain terms it found concerning. At nearly the same time, the FTC withdrew its appeals pending in the Fifth and Eleventh Circuits of
Florida on Verge of Enacting Employer-Friendly Non-Compete Law
UPDATED July 7, 2025
The bill became law on July 4, 2025.
Florida lawmakers recently passed the Florida Contracts Honoring Opportunity, Investment, Confidentiality and Economic Growth (CHOICE) Act (the “Act”), which would create a presumption that covered non-compete and garden leave agreements are enforceable. If it is approved by Governor Ron DeSantis, or allowed to