Low Wage And Employee Classification Limits On Non-Compete Agreements

Over the past few years, states across the country have sought to limit or reduce the use of employee non-compete agreements. While some states have imposed outright bans on such agreements, many more have passed laws that narrow the scope or classification of an employee who may be subject to a non-compete.

A common restriction is to prohibit the use of non-competes for employees who earn below a certain threshold - e.g., annual compensation, hourly wage, percentage of poverty level, or FLSA status. Employers operating in multiple states across the country face a patchwork of regulations and need to keep their non-compete thresholds up to date. Setting calendar reminders for the annual wage updates and following the  Proskauer Non-Compete and Trade Secrets  page ensures that employers keep their agreements compliant with ever changing obligations.