State-Specific Laws: Non-compete laws vary significantly by state. Some states like California largely prohibit non-competes, while others like Florida have specific statutory requirements. States may have different duration and geographic scope limitations.
Federal Trade Commission Proposed Rule: 2023 FTC proposed rule to ban non-compete clauses nationwide, which could significantly impact the enforceability of non-compete agreements.
Federal Antitrust Laws: Federal antitrust regulations that may impact the scope and enforceability of non-compete agreements, including considerations from the Biden Administration's Executive Order on Promoting Competition (2021).
Reasonable Scope Requirements: Legal principle requiring non-compete agreements to have reasonable restrictions in terms of duration, geographic area, and scope of prohibited activities.
Legitimate Business Interests: Legal requirement that non-compete agreements must protect legitimate business interests such as trade secrets, confidential information, or customer relationships.
Consideration Requirements: Legal principle requiring that employees must receive something of value (consideration) in exchange for signing a non-compete agreement.
State Case Law: Relevant court decisions and precedents specific to each state regarding the enforceability of non-compete agreements and reasonable restrictions.
Blue Pencil Doctrine: Legal principle allowing courts to modify or strike unreasonable provisions while maintaining enforceable portions of the agreement.
Industry-Specific Regulations: Special restrictions and requirements for non-compete agreements in specific industries such as healthcare, technology, and professional services.
Employee Classification Considerations: Different rules and requirements for non-compete agreements based on employee classification (executives, regular employees, independent contractors) and wage thresholds.
