July 2026 legal updates

By Emma Peterson. 

Learn about new noncompete limits, immigration policies, warranty provisions and more with this month’s Cotney Brief!  

Trent Cotney is well-known in the roofing industry for his expertise in roofing litigation and arbitration. He is a partner at leading legal firm Adams and Reese and has defended roofers on construction defect claims, prosecuting lien and bond law claims, defending OSHA citations, contractor licensing defense and bid protests since 1999. In his monthly newsletter, the Cotney Briefs, Trent uses his extensive knowledge to identify and explain some of the most timely legal and regulatory changes happening in the roofing industry. Here’s what he covered in his July 2026 newsletter. 

1 – New noncompete limits in Tennessee 

As of July 1, 2026, Tennessee has a new statute that limits the use of noncompete agreements. Specifically, it includes a new compensation threshold that means employers cannot “require or enforce a noncompete against an employee whose annualized compensation is less than $70,000.” 

What this means for contractors: This does not prohibit all restrictive covenants (such as confidentiality agreements, nondisclosure agreements and trade secret protections) in the state of Tennessee. Contractors in the state should review all of their Tennessee employment agreements to ensure they are in compliance with this new limit.  

2 – Supreme Court rulings on immigration policies 

The Supreme Court of the United States recently saw a few key immigration cases:  

• Mullin v. Doe: The Court held that “challengers to DHS’s termination of TPS for Haiti and Syria were not entitled to court orders postponing those terminations while litigation continued.”  
• Mullin v. Al Otro Lado: The Court held that “that a person who is still in Mexico has not ‘arrived in the United States’ under the relevant statutory provisions.” 
• Trump v. Barbara: The Court held that “children born in the United States to parents who are unlawfully or temporarily present are ‘subject to the jurisdiction’ of the United States and are citizens at birth under the Fourteenth Amendment.” 

What this means for contractors: Overall, these outcomes have a few effects. First, they gave DHS the ability to move forward with ending TPS protection and a stronger position for future TPS disputes. Second, the ruling on Mullin v. Al Otro Lado gave the executive branch great authority over asylum processing at ports of entry. And finally, the Court preserved the birthright citizenship of children born in the United States no matter parental status. 

3 – Manufacturer instructions in relation to warranty priority clauses 

Manufacturer instructions are key to construction contracts but are too often forgotten. And when they are left out, disputes can arise in relation to installation and warranty coverage. Trent gave an example, “The contractor may be blamed for performance problems, while the manufacturer may later deny warranty coverage due to improper installation.” 

What this means for contractors: In order to mitigate this risk, it is important to make manufacturer requirements a contractual priority with a provision clause. Trent shared an example of what this provision may look like: 

Contractor shall perform the Work in accordance with the Contract Documents, applicable codes, approved submittals and the published installation instructions, specifications, technical bulletins, and warranty requirements of the applicable manufacturer.  

If Contractor identifies a conflict between the Contract Documents, field conditions, owner direction, design professional direction, consultant direction, shop drawings, specifications, approved submittals, or any other project requirement and the manufacturer’s published installation instructions, technical requirements, or warranty conditions, Contractor shall provide written notice of the conflict before proceeding with the affected Work, unless immediate action is necessary to protect persons or property.* 

*Read the whole provision.

4 – New York structural incident 

There was a recent incident in Manhattan, New York involving two structural columns buckling around the 21st and 22nd floors during a renovation. This incident has sparked an investigation into what caused the buckling and into the project oversite. In this situation, all parties are being looked at, including owner, general contractor, trade contractors and designers. Reuters reported that work has been halted as city officials plan and conduct their safety inspection. 

What this means for contractors: This incident highlights “the unique risk of large-scale office-to-residential conversions.” It is a good reminder to maintain clear responsibility, strong field documentation and careful evaluations throughout projects.  

Read the entire July 2026 Cotney Brief!