It has been a year since the Federal Trade Commission proposed a rule that would ban noncompete contracts for full-time employees and independent contractors, but there has yet to be a final ruling.
The FTC is not the only one holding back on a noncompete ban. In December, New York Gov. Kathy Hochul vetoed a bill that would have banned all noncompetes.
Some states, including Connecticut, Florida, Indiana, Maryland, New Jersey and Wisconsin, have all challenged noncompete laws. These states have amended their noncompete laws, created bills for physicians or employees in general, or have added certain restrictions.
California recently added a requirement for businesses that previously held employees to now-unenforceable noncompete agreements. The state allows noncompetes only in connection with the sale of a business, sale of equity in a business or ending of a partnership.