State-Specific Laws: Non-compete laws vary significantly by state. Some states like California prohibit non-competes almost entirely, while others like Florida have specific statutory requirements. Several states have recently enacted legislation limiting non-competes, including Illinois and Massachusetts.
Federal Laws and Guidelines: Key federal considerations include the FTC's proposed rule to ban non-competes (pending), federal antitrust laws, and the Biden Administration's Executive Order encouraging limitation of non-compete agreements.
Legal Doctrines: Fundamental legal principles that must be considered include reasonable scope of restrictions, legitimate business interests, consideration requirements, and public policy concerns.
State Enforceability Requirements: Specific state requirements for enforceability including time limitations, geographic scope, job scope/industry restrictions, and consideration requirements, particularly for existing employees.
Industry-Specific Regulations: Special regulations and considerations for specific industries including healthcare, technology, broadcasting, and professional services sectors.
Employment Law Intersection: Interaction with broader employment law principles including at-will employment doctrine, employee classification (exempt vs. non-exempt), and wage and hour laws.
Recent Legal Trends: Current legal developments including growing tendency to limit enforcement, increased scrutiny of broad restrictions, and greater focus on employee mobility rights.
