LEGAL MATTERS
Noncompete Agreements — A Basic Guide of the Do’s and Don’ts
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Jeffrey W. King Legal Counsel for the WFCA Jeffrey King has more than 35 years’ experience in complex litigation with a focus on contracts, employment, construction, antitrust, intellectual property and health care. He serves as legal counsel for WFCA and other trade associations, and is a LEED Accredited Professional. For more information, contact him at (561) 278-0035 or
our office manager, that you trained for two years, has just quit to join a competitor. They convinced one of your salespersons to join them, and now they are recruiting some of your other employees. It is not just that you lost the investment in training these former employees, they are now following up on leads developed while they worked for you. What can the flooring retailer and contractor do to protect itself? Many companies ask an employee to sign employment contracts that include a noncompete clause to protect their legitimate business interests. Other companies may have employees sign a separate noncompete agreement. The problem is that many states seek to limit the enforceability of a noncompete agreement. Overbroad or vague agreements are often rejected by the court. There is no perfect noncompete agreement that can always be enforced. There are, however, steps and precautions the flooring retailer or contractor can take to maximize their protection. So, what are the limits, what should a noncompete agreement include, and can they be enforced?
What Are the Limits on Noncompete Clauses? Noncompete agreements can make it difficult for employees to find work after quitting or being let go. Noncompete agreements often prevent employees from working in the same industry as their former companies. If they have spent their entire careers developing their expertise and skills in that particular industry, then such employees will be effectively foreclosed from finding any comparable work on similar pay. Accordingly, they are “disfavored” by the courts so they are strictly construed and, as explained below, are subject to key limitations.
jeffw@jkingesq.com.
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