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ARTICLE · 15 JANUARY 2016

Protected Occupations: Statutory Exemptions From Non-Competes For Employee Classes

Nutter McClennen & Fish LLP
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The states have a rich tradition of passing legislation forbidding or limiting the use of non-compete agreements with identified classes of employees.

United StatesEmployment and HR
Kathryn Conde
Kathryn Conde
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The states have a rich tradition of passing legislation forbidding or limiting the use of non-compete agreements with identified classes of employees. As you might expect, a number of states forbid or limit the use of non-compete agreements with:

  • Physicians, nurses, psychologists, social workers and other medical professionals
  • Lawyers
  • Individuals working in broadcasting

Public health, public policy and ensuring the free flow of information and ideas motivate the prohibition or limitation on non-compete agreements for these occupations. But what about auto salespeople? Cosmetologists? Secretaries and clerical staff? Or real estate brokers? All of these occupations are examples of exempted or specially protected employee classes. Louisiana prohibits auto dealerships from binding sales staff to non-competition agreements. Vermont protects barbering and cosmetology students from being required to enter a non-competition agreement with the beauty shop that

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