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In this video, Steve Lato addresses the legality of non-compete agreements, which are contracts where one party agrees not to compete against another for a specified time and location. He notes that enforceability varies across the 50 states in the U.S., but generally, non-compete agreements can be enforceable if they meet reasonable criteria. Lato emphasizes that his insights are not legal advice and encourage viewers to consult local attorneys for guidance specific to their jurisdiction.