Non-Compete Agreements: Current Updates and Tips for Drafting and Enforcing Agreements Under Increasing Regulation (On-Demand)

Course Description

Non-compete agreements are getting more and more difficult to enforce because of recent federal and state initiatives to limit these agreements to protect employee mobility. To avoid drawing the ire of federal agencies and ensure enforceability under increasingly restrictive state laws, employers must ditch one size fits all non-compete agreements in favor of more limited and targeted agreements. In this presentation, participants will get an update on the law governing non-compete agreements and tips for drafting and enforcing agreements under the current law.

Principles

• Stay Current on the Rapidly Changing Legal Landscape
  • Non-compete law is evolving through federal initiatives, state legislation, regulatory activity, and court decisions.
  • Practitioners must understand the latest developments and how they affect the enforceability of existing and new agreements.
• Draft Narrow, Targeted Restrictions
  • Employers should move away from one-size-fits-all non-competes and tailor restrictions to the employee, position, legitimate business interests, geographic scope, and duration.
  • Overly broad provisions can increase the risk of being challenged or rendered unenforceable.
• Account for State-Specific Requirements
  • Enforceability increasingly depends on the jurisdiction involved.
  • Counsel should evaluate applicable state restrictions, including limitations on scope, duration, employee eligibility, notice requirements, and permissible use of non-competes.
• Balance Employer Protection With Employee Mobility
  • Effective agreements should protect legitimate interests such as confidential information, customer relationships, and trade secrets without imposing unnecessary restraints on an employee’s ability to work.
  • Practitioners should consider whether alternative protections—such as confidentiality, non-solicitation, or trade-secret provisions—may better accomplish the employer’s objectives.
• Plan for the Future of Non-Compete Agreements
  • Employers and employees should anticipate continued regulatory and legislative scrutiny and changing standards of enforceability.
  • Counsel should regularly review existing agreements, update templates, and consider how future restrictions may affect hiring, departures, negotiations, and enforcement strategies.

Syllabus

1. Review latest developments in the law concerning non-competes
2. Examine best practices for drafting and enforcing non-compete agreements
3. Explore what employers and employees can expect from non-compete agreements in the future