State-Specific Laws: Each state has different requirements and restrictions for non-compete agreements. Some states like California largely prohibit them, while others like Florida enforce them with reasonable restrictions. Recent changes in states like Illinois and Washington have placed additional limitations on non-compete agreements.
Federal Laws and Guidelines: Key federal considerations including the FTC's proposed rule to ban non-compete clauses, federal antitrust laws, and the Biden Administration's Executive Order on Promoting Competition in the American Economy.
Employment Law Considerations: Fundamental employment laws that must be considered including the Fair Labor Standards Act (FLSA), National Labor Relations Act (NLRA), and various state employment laws that may impact the enforceability of non-compete agreements.
Common Law Requirements: Essential common law elements including reasonable scope of restrictions, legitimate business interest protection, geographic limitations, time duration limitations, and consideration requirements for the agreement to be enforceable.
Industry-Specific Regulations: Specific regulations and requirements that apply to particular industries such as healthcare, technology, financial services, and professional services, which may affect how non-compete agreements can be structured.
Constitutional Considerations: Constitutional aspects that must be considered including right to work laws, interstate commerce implications, and fundamental contract rights protected under state and federal constitutions.
