What Are Some Examples Of An Employer’s Legitimate Business Interests?

Examples of legitimate business interests include protecting an employer’s confidential information or their trade secret information, the goodwill that businesses have, and prospective or current customers. One thing that isn’t a legitimate business interest is merely protecting the employer from general competition.

I Want To Ask My Employees To Sign Non-Compete Agreements. What Can I Ask For?

There are two things that happen with a non-competition agreement. First, the employer has to promise to provide something that relates to what they are trying to prevent the potential future ex-employee from divulging or using. In most situations that is confidential information or trade secret information. In exchange for that, the employee will agree to not compete with that employer in three different categories. The competition has to be reasonable as to time, reasonable as to the geographic area, and reasonable as to the activity restrained.

Can I Terminate Their Employment If My Employees Refuse To Sign A Non-Compete Agreement?

If it is an at will employment situation, then the employer can elect to terminate employment. If there is an actual written agreement, then that might be different, but in most situations it is at will employment. If the at will employee refuses to sign any covenant not to compete, then that employer can terminate that relationship.

I Want My Employees To Sign Non-Compete Agreements After They’ve Started Their Employment With My Company. Will They Be Valid?

Employees can sign a non-compete agreement at any time. However, if they were provided any confidential information before signing, that information cannot be held to bind the non-compete agreement. It will only cover new confidential information the employee is given after signing the non-compete.

My Employee Signed A Non-Compete But Has Now Gone Into Business For Himself. Can He Legally Do That?

Your former employee’s ability to open a new business depends on the type of business that he or she has gone into. If it is a business that directly competes with the employer’s business, then we look at the specified time limit of the agreement and the geographic scope. If those items appear to violate the agreement, then an employer may have recourse against the former employee.

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