Understanding Non-Compete Agreements (UNCA)

Overview

The enforceability of non-compete agreements in the U.S. is in flux. While the FTC's proposed ban is on hold pending legal proceedings, existing state laws continue to govern the validity of non-compete clauses. Some states, like California, Oklahoma, and North Dakota, prohibit non-compete agreements, while others enforce them under certain conditions. Although state laws vary, non-competes are often used to protect the creation and development of corporate goodwill, customer relationships, and specialized training, among others. Today, employees are more likely to be asked to sign non-compete agreements as a condition of employment. Non-compete agreements are also a common component of a business sale agreement. This program surveys non-compete agreements from all angles, including the current state of play regarding the usefulness and enforceability of agreements going forward. Whether you advise individual clients or work for an employer, this course provides an understanding of common issues that arise in the negotiation and enforcement of non-competes.

Major Topics:

• Review of the current legal and regulatory framework surrounding non-compete agreements
• Enforcement of non-compete agreements from the employer’s perspective
• Opposing enforcement of non-compete agreements from the employee’s perspective
• Understanding reasonable geographic scope and time limitations for non-compete agreements
• Understanding key issues that arise during enforcement and opposition to enforcement of non-compete agreements

Learning Objectives:

• Understand the issues that arise when an employer seeks to enforce a non-compete or when an employee challenges the validity of a non-compete agreement
• Understand how non-compete laws vary significantly by state
• Be aware of common issues that arise when drafting and litigating non-compete agreements