Restrictive Covenant and Trade Secret Year-End Review

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2021 was an active year for trade secret and restrictive covenant law. 28 states introduced a total of 68 restrictive covenant bills, the United States Senate re-examined two prior restrictive covenant bills, and President Joe Biden asked the Federal Trade Commission (“FTC”) to examine restrictive covenants in order to determine if certain covenants, such as non-competition agreements, can be eliminated from the legal landscape. As with most years, however, only a few of these bills and activities actually resulted in meaningful changes to restrictive covenant and/or trade secret law. Below is a summary of those changes, and a few items/issues companies should be aware of as we head into 2022.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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