Noncompete and Nonsolicitation Templates Removed
XpertHR continuously tracks developments in employment law, and we have noticed a trend that requires changes to our content.
States have increasingly passed legislation restricting an employer's use of restrictive covenants and expanded their enforcement mechanisms and penalties. Employers that use templates to draft noncompete and nonsolicitation clauses and agreements may expose themselves to enforcement actions and class action lawsuits by employees who signed template noncompetes. Such actions are already underway in some states, such as Washington and Virginia. In addition, many state enforcement agencies have increased their scrutiny of noncompete and nonsolicitation agreements.
As a precautionary measure to protect our subscribers from these increased risks, XpertHR has removed the following templates from the site:
- Noncompete Contract Clause
- Noncompete Agreement Form
- Nonsolicitation Contract Clause
- Nonsolicitation Agreement Form
In addition, the noncompete and nonsolitication clauses have been removed from four state-specific restrictive covenant and confidentiality agreement forms. The confidentiality provisions remain and the forms have been renamed. The forms are:
- Confidentiality Agreement: Florida
- Confidentiality Agreement: Illinois
- Confidentiality Agreement: New York
- Confidentiality Agreement: Texas
Finally, the noncompete and nonsolicitation clauses have been removed from the Employment Contract Form.
XpertHR will continue to monitor this trend and revise our content as needed.