Employee Non-Compete Agreement


Overview
- The Employee Non-Compete Agreement is signed by new employees.  If the employee later leaves the company, this agreement prevents him or her from competing against the company, recruiting other employees, or misusing confidential information.
- The law regarding the enforce-ability of non-competition clauses varies from state to state, industry to industry and may be different for a particular situation (such as the employment of a former owner after the sale of a company, versus a simple employment contract).  It is strongly recommended that you consult an attorney before signing a contract with a non-competition clause. 
- Courts generally do not favor agreements that prevent people from working.   Courts appreciate the need for non-compete agreements, but they will not tolerate agreements with unreasonable restrictions.  The fact that an employee signed the agreement does not guarantee that the court will enforce it.
- Courts understand that there is a substantial investment in hiring, training, and paying employees, and that employers need to protect their interests.  The court will enforce a reasonable non-competition agreement, provided the employer has a legitimate need for the agreement, the geographic area covered is not too broad and the duration of the agreement is not too long.

When You Need It
- To prevent former employees from competing with the company, recruiting other employees, or misusing confidential information.
- Use this contract when hiring a key employee.  Have the employee sign this contract as part of their employment agreement.  If the employee later leaves the company, this agreement may prevent them from competing with the company.


Getting Started

You will need:
- Name and address of the company.
- Name and address of the employee.
- Details of the Agreement, such as length of time to not compete and geographic restrictions.

When to Review and Revise 
- To correct the information contained in the Agreement.
- To document a non-compete agreement with another employee.