- Effective September 4, 2024, the tried to invalidate virtually all Covenants Not To Compete. The Courts struck down the FTC Rule on Covenants Not To Compete.
- Today, enforceability of a Covenants Not To Compete remains subject to regulation under State Law.
- State Laws vary.
- Generally, courts are reluctant to enforce a Covenants Not To Compete because it is a restraint on trade.
- In most states, a court is less likely to enforce a Covenants Not To Compete entered into by an employer attempting to stop an employee or independent contractor from engaging in employment that competes with the business of the employer, than if it is a Covenants Not To Compete that is entered into in connection with the sale of a business.
- For more information on this topic, see my Blog on this Website.
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