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Employment Agreements and Non-Competes

Employees are often asked to sign an employment agreement at the beginning of, or during, their employment.  These agreements usually contain the key pieces of the employment relationship, such as compensation and the term of the employment.
The agreements also often include restrictions on the employees, such as refraining from soliciting other employees or third-parties (like customers or suppliers), starting a competing business, or going to work for a competitor for a stated period of time after the employment relationship ends.
Some courts don’t allow non-compete agreements at all because non-compete agreements restrict competition and one’s ability to be a productive contributor to the economy. Plenty literature also supports the idea that non-competes affect lower income workers more negatively than others.
The purpose of a noncompete agreement is to protect the employer’s business interests, including customer relationships, confidential information, and trade secrets.   But they rarely do.  Oftentimes, the agreements are overbroad—not limited in length, geographic scope, or in the actual definition of a “competing business”.

If you have concerns about an employment agreement, or a noncompete, please contact us for an evaluation.

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