Trade Secrets & Employee Mobility

Tennessee has just adopted a new framework for noncompete agreements. On May 7, 2026, Tennessee Governor Bill Lee signed into law House Bill 1034, as amended. The new statute goes into effect on July 1, 2026, and will apply to any agreement entered into, renewed or amended on or after that date. Employers with workers in Tennessee should immediately familiarize themselves with the new requirements. The new law:

On April 15, 2026, Governor Janet T. Mills signed into law “An Act Relating to Noncompete Agreements Between Employers and Health Care Practitioners,” L.D. 2200 (the “Amendments”).  The Amendments significantly restrict noncompetes for health care practitioners in the State of Maine.  The Amendments apply to all noncompete agreements entered into, or renewed on or after, the Amendments’ effective date of July 13, 2026 (the “Effective Date”).

On March 24, 2026, Governor Spencer J. Cox signed the Healthcare Worker Post-Employment Amendments, House Bill 270 (the “Amendments”) into law. Taking effect on May 6, 2026, the Amendments eliminate, with limited exceptions, post-employment noncompetes in the State of Utah for healthcare workers.

Thomson Reuters Practical Law has released the 2026 update to “Garden Leave Provisions in Employment Agreements,” co-authored by Peter A. Steinmeyer and Lauri F. Rasnick, Members of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Chicago and New York offices, respectively.

Epstein Becker & Green is pleased to share that the latest edition of our comprehensive 50-State Noncompete Survey has been updated and is now available. 

As we reported last month, Virginia lawmakers passed Senate Bill 170 imposing additional restrictions on employee noncompetes in the Commonwealth. On April 13, 2026, Governor Abigail D. Spanberger signed Senate Bill 170 (“the Act”) into law. The Act will take effect July 1, 2026 and will prohibit enforcement of a noncompete if the employer discharges the employee without cause and does not provide the employee with severance benefits or other monetary payment. The Act applies to agreements entered into, amended, or renewed on or after July 1, 2026.

What employers should know about key developments this week:

• FTC Enforcement Shift on Non-Competes: The Federal Trade Commission (FTC) announced it will enforce non-compete agreements on a case-by-case basis, moving away from broad rulemaking.
• Key Enforcement Priorities: The FTC is prioritizing non-competes in industries with limited access to confidential information and for low-wage, hourly, or entry-level workers.
• Health Care Industry Scrutiny: The composition of panelists at the FTC’s recent workshop—including physicians and veterinarians—suggests the agency will continue focusing on non-competes involving health care professionals.

In this episode of Spilling Secrets, Epstein Becker Green attorneys Daniel R. Levy and Gianna Dano break down what the FTC’s new approach means for employers, including key enforcement priorities and compliance tips.

Washington state has joined a growing list of states banning almost all noncompetes between employers and employees and independent contractors.  As we previously reported, the Washington State legislature introduced HB1155 earlier this year.  On March 23, 2026, Governor Bob Ferguson signed into law Engrossed Substitute House Bill 1155 (the “Act”) that effectively bans almost all noncompetes for Washington-based employees and independent contractors.

Virginia is poised to impose new limitations on the circumstances in which employers may restrict employees from working for a competitor or engaging in other competing business activities. As we reported in 2020, the Commonwealth first prohibited noncompete agreements for “low-wage” workers. Then as we reported in 2025, Virginia expanded those restrictions to prohibit noncompetes with employees who are entitled to overtime pay under the FLSA for any hours worked in excess of 40 hours in any one workweek (“non-exempt employees”).

Thomson Reuters Practical Law has released the 2026 update to “Preparing for Non-Compete Litigation,” co-authored by Peter A. Steinmeyer.

The Note describes the steps an employer can take to prepare to successfully litigate a non-compete action, the primary options for enforcing a non-compete agreement, and the strategic decisions involved with each option. It discusses gathering evidence, assessing the enforceability of a non-compete, considerations before initiating legal action, cease and desist letters, seeking declaratory judgments, damages, and injunctive relief, and potential remedies available under the Defend Trade Secrets Act (DTSA). This Note is jurisdiction neutral.