Employment Agreement

How Non-Compete and Non-Solicitation Agreements can affect you

More and more, companies both large and small are attempting to protect against competition through the inclusion of non-competition and non-solicitation agreements.

Often, new employees are obligated to sign these agreements as a condition of hire, and current employees are obligated to sign these agreements as a condition of continued employment.

Non-compete agreements usually restrict when and where you will be permitted to compete against your former employer, while non-solicitation agreements preclude you from soliciting your former employer’s clients and/or employees to join you at your new business or that of a competitor’s.

Generally, non-compete agreements are enforceable if:

  • the employer demonstrates it has a legitimate business interest to protect;
  • the restrictions are no greater than necessary to protect the employer’s business interest; and
  • it does not unnecessarily restrict an individual’s ability to earn a living.

Every case is unique. The law must balance between protecting a business’ interest and an individual’s ability to earn a living.

Because the legal enforceability of these types of agreements are very fact intensive, it is important to review your situation and agreement with legal counsel.  If you are faced with a non-compete or non-solicitation agreement, contact our office for a consultation to discuss your situation.