Drafting Non-Competes In A Shifting Regulatory Landscape

As our readers are aware, we have been tracking the ongoing trend of restricting employee non-compete agreements by various states and the federal government, including the FTC and NLRB. In fact, some states — most notably California — have issued broad prohibitions on non-compete agreements.

These contracts, which are common across a variety of industries, have been subject to ever-increasing scrutiny and limitation, even in states long seen as havens for commercial agreements, to ensure they are narrowly tailored and reasonably necessary to protect employers' legitimate business interests.

For employers seeking to include non-compete provisions in their employment agreements, understanding the evolving legal landscape and the need for precision is more paramount than ever.