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Are non-competes banned in the US?

In April of 2024, the FTC adopted a rule banning new non-competes and prohibited enforcement of already executed agreements, with limited exceptions, for all employees because such restrictions limit workers mobility and lead to lower pay.

Do non-competes hold up in court?

Furthermore, some states, such as California, North Dakota and Oklahoma completely ban non-compete agreements. Whereas other states, like Oregon (Senate Bill 169) and Nevada (Assembly Bill 47 22.5(7)), have even passed laws that severely limit the enforceability of non-compete agreements.

Are non-competes enforceable still?

(c) [Employee name] agrees not to set up in business as a direct competitor of [company name] within a radius of [number] miles of [company name and location] for a period of [number and measure of time (e.g., four months or 10 years)] following the expiration or termination of this agreement. SAMPLE NONCOMPETE AGREEMENTS piconepress.com lectures 2012spring piconepress.com lectures 2012spring

What is the purpose of a non-compete agreement?

Modern uses of non-compete agreements are generally premised on preventing high-skilled workers from transferring trade secrets or a customer list from one firm to a competing firm, thus giving the competing firm a competitive advantage.

Can non-compete still be enforced?

Now that the FTC is permanently enjoined from enforcing the rule, (unless and until a successful FTC appeal), non-competes return to the status quo and are legal and enforceable on the same terms as they were before the FTC passed the non-compete rule.

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