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In this tutorial, Steve Lato discusses non-compete agreements, defining them as contracts where one party agrees not to compete with another for a specified time and area. He notes that legality varies by state, with each of the 50 states having distinct regulations. However, generally speaking, non-compete agreements are enforceable if they meet reasonable criteria. Lato emphasizes that the information provided is not legal advice and encourages viewers to consult local attorneys regarding specific circumstances in their area. The overall takeaway is that while enforceable, the validity of these agreements heavily depends on state law and reasonableness.