What should be considered in a non-compete agreement?

What should be considered in a non-compete agreement?

The main consideration here is the effect the non-compete agreement has on the restricted person’s/company’s livelihood.

Can a court invalidate a non-compete agreement?

However, if you are trying to restrict someone from having contact with your clientele or using certain practices but that information is not protected and is made readily available to the general public, the court will likely find that restriction to be invalid.

Can a person operate a competing business within 10 miles?

However, since it is reasonable to believe that a person wouldn’t drive more than 10 miles out of his/her way to find a tailor, a restriction that a person can’t operate a competing business within 10 miles of the other company would be a lot more likely to be held as valid.

What is the enforceability of non-competes in my state?

As discussed above, Non-Compete laws vary on a state-by-state basis. Some states are more lenient in their treatment of allowable Non-Competes and others are more strict. That being said, however, there are other states that don’t permit Non-Competes at all.

When do non-competes go into effect in Maine?

Finally, Non-Competes in Maine cannot take effect until one year after the employee is hired or six months after the employee signs the agreement, whichever is later.

What are the effects of non-competes in business?

Often, non-competes restrict the employee or former employee from working with direct competitors, taking customers with them, or hiring staff out from under the employer. They may also restrict the employee from utilizing information that belongs to the employer, such as client lists, customer contacts, strategy documents, etc.

Can a non-compete be allowed in Alaska?

In Alaska, although Non-Competes are not favored by courts, they are permitted, as long as they are narrowly tailored and reasonable with regard to the restrictions, and they are trying to protect a legitimate interest of the employer. The court will look at several additional factors surrounding the details of the employment relationship, as well.