The Massachusetts Superior Court has ruled that noncompete agreements arising out of the employment relationship entered into between a parent company and a subsidiary’s employee are not enforceable because the parent company does not fall within the meaning of “employer” under the Massachusetts noncompete statute.

Although the Federal Trade Commission (FTC) announced on September 5 that it was ending its appeals of decisions in the Fifth and Eleventh Circuits which set aside the FTC nationwide non-compete ban thereby ending its defense of the Biden administration’s 2024 rule,  the FTC has simultaneously communicated that it intends to pursue enforcement action alleging anticompetitive conduct with respect to restrictive covenants that it views as being overly broad or unnecessary, and that it is particularly focused on the healthcare industry.  

The vast body of restrictive covenant law continues to develop across the country as states navigate refining their approach to non-compete and non-solicitation agreements with some expansions along with the general trend of more restrictions.

Below we outline recent developments regarding state non-compete and non-solicitation laws in Kansas, Virginia, Florida, New Jersey and Colorado.