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The Basics of Employment Based Non-Compete Agreements in Nebraska

The Nebraska Lawyer
November/December 2021
Update: On April 23, 2024, the Federal Trade Commission (“FTC”) issued a final rule that would generally prohibit companies from utilizing non-compete clauses with employees, independent contractors, consultants, and similar workers.[i] The final rule will become effective 120 days following its publication in the Federal Register. However, the U.S. Chamber of Commerce and other business groups have challenged the final rule in a lawsuit filed on April 24, 2024. Read our summary of the final rule here.

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.

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