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How legal are non-compete agreements?

Jul 1, 2023 | Questions & Answers

The enforceability of non-compete agreements varies depending on the jurisdiction. In the United States, the legality is primarily governed by state law. Non-compete agreements are often scrutinized because they can limit a person’s ability to find employment in their field. In California, for instance, non-compete agreements are generally unenforceable, whereas in other states they might be enforceable if considered reasonable in duration, geographic scope, and in protecting legitimate business interests. Recently, there has been a trend toward restricting the use of non-competes, especially for low-wage workers. In Europe, the enforceability of non-compete clauses varies by country, and usually requires a balancing of interests between protecting a company’s legitimate business interests and an individual’s right to work in their chosen profession.

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