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Insights and Expertise

For companies operating in the electronic payments industry, understanding these differences is critical to ensure
enforceable and compliant agreements. The following shows differing policies among several states:

This analysis reveals that even within the same state, specific rules may differ between non-competes and employee and
customer non-solicits.
Implications for the Electronic Payments Industry

Following are four implications to be aware of for the electronic payments industry:

1. Tailored agreements: Businesses should customize non-compete and non-solicit agreements to align with state-
specific requirements. A one-size-fits-all approach can result in unenforceable clauses.

2. Strategic planning: Companies operating across multiple states must factor in the legal enforceability of these provi-
sions during their hiring, agent contracting and client onboarding processes.

3. Legal consultation: Given the rapid changes in non-compete and non-solicit laws, consulting with experienced legal
counsel ensures compliance and minimizes risk.

4. Alternative protections: In states with strict restrictions or bans, businesses can explore other methods to protect
their interests, such as confidentiality agreements or trade secret protections.

Understanding and adhering to state-specific non-compete and non-solicit laws is essential for businesses in the electronic
payments industry. By staying informed and proactive, companies can protect their assets while fostering compliance
with the law. Whether operating in lenient states like Alaska or restrictive environments like California, businesses must
prioritize thorough legal reviews and strategic contract drafting to thrive in a competitive market.

Note: This article is for informational purposes only and does not constitute legal advice. The information provided may
not reflect the most current legal developments and may be incomplete or inaccurate. Readers should consult a qualified
attorney to obtain legal advice specific to their circumstances.

An alumnus of the University of San Diego, School of Law, Arzumanyan has a proven track record of drafting, reviewing, revising and negotiating an
extensive array of commercial contracts, including vendor, nondisclosure, employment, software-as-a-service, consulting and marketing agreements.
Leveraging his prior in-house counsel background, Arzumanyan has also carved out a unique niche within the electronic payments industry as his
transactional expertise now encompasses merchant processing, merchant banking and sponsorship, referral, independent sales office, and other
related agency agreements. Contact him at larzumanyan@glrlegal.com.

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