Employee Issue:

Non-Competition Agreements

Some employers require new employees to enter a non-competition agreement before starting work. These agreements usually take effects after the employee-employer relationship has ended. Non-competition agreements may be used to protect trade secrets or goodwill. Courts, however, disapprove of these agreements as limitations on a former employee’s right to make a living. To be valid, a non-competition agreement must protect a legitimate business interest of the employer; be supported by consideration when it is signed; and be reasonable in geography, time and scope.