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In this video, Steve Lato addresses the legality of non-compete agreements, which are contracts prohibiting an individual from competing against a business for a specified time and place. He explains that the enforceability of these agreements varies slightly across the 50 states in the U.S., but the overall rationale typically follows a similar thought process. Lato emphasizes that the information provided is not legal advice and encourages viewers to consult local attorneys for specific guidance relevant to their state. Generally, non-compete agreements are enforceable if they are reasonable in scope and duration.