Update: On April 23, 2024, the Federal Trade Commission (“FTC”) issued a final rule that would have generally prohibited companies from using non-compete clauses with employees, independent contractors, consultants, and similar workers. However, on August 20, 2024, the U.S. District Court for the Northern District of Texas invalidated the FTC’s Non-Compete Rule, citing overreach and arbitrary enforcement. The Rule, which was set to take effect on September 4, 2024, is now blocked nationwide. While this decision provides clarity on the Rule's status, employers should stay informed about potential appeals and ongoing legal developments.

When someone calls to discuss restrictive covenants between an employer and employee in Nebraska, there are certain questions and issues that frequently arise and every attorney should be prepared to address. One likely question is: “Are non-competes enforceable in Nebraska?” Another is: “Nebraska will only enforce a non-solicit, right?” Or, perhaps the open-ended request: “What can you tell me about having an employee sign a non-compete in Nebraska?” With these types of questions in mind, this article, featured in the November/December 2021 issue of The Nebraska Lawyer, offers a concise explanation of the basic rules and issues that impact the enforceability of employment-based restrictive covenants under Nebraska law.

_{This content is made available for educational purposes only and to give you general information and a general understanding of the law, not to provide specific legal advice. By using this content, you understand there is no attorney-client relationship between you and the publisher. The content should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.}