State-Specific Non-Compete Laws: Non-compete laws vary significantly by state. Some states like California largely prohibit non-compete agreements, while others have specific duration and geographic scope limitations. Recent state-level reforms have further limited non-compete enforcement.
Federal Trade Secrets Laws: Key federal legislation including the Defend Trade Secrets Act (DTSA) of 2016 and the Economic Espionage Act that protect trade secrets and confidential information.
Employment Laws: Federal and state employment laws including Fair Labor Standards Act (FLSA), National Labor Relations Act (NLRA), and state-specific employment regulations that impact employment agreements.
FTC Regulations: Federal Trade Commission regulations, including proposed rule to ban non-compete clauses (pending as of 2023) and guidelines on unfair competition practices.
Common Law Principles: Legal principles developed through court decisions, including reasonableness doctrine, consideration requirements, and public policy limitations affecting contract enforcement.
Constitutional Considerations: Constitutional rights and principles including First Amendment rights, right to work, and interstate commerce implications that may affect agreement enforceability.
Industry-Specific Regulations: Specific regulations affecting healthcare, financial services, and technology sectors that may impact the scope and enforcement of non-compete and confidentiality provisions.
Enforceability Requirements: Key elements required for agreement enforceability: reasonable scope, legitimate business interest, temporal limitations, geographic restrictions, adequate consideration, and clear confidentiality terms.
