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In this video, Steve Lato addresses the legality of non-compete agreements, which are contracts stating that one party will not compete against another for a specified time and area. While laws can vary across the 50 states, the general consensus is that non-compete agreements are enforceable if they are reasonable in scope. Lato emphasizes that his discussion serves as a guideline and does not constitute legal advice applicable to any specific state. Viewers are encouraged to consult local attorneys for personalized legal guidance regarding their situations.