Non-compete and Non-disclosure Agreements

A non-compete contract is an agreement that restricts the ability of an employee to work in a particular field for a certain period of time and within a certain geographical area. Such agreements must be in writing and signed by the former employee in order to be enforced. A covenant not to compete will be enforced if it is reasonable in time, area and line of business. With respect to former employees, restraints of six months or less are presumptively reasonable; restraints more than two years are presumptively unreasonable. Even if a covenant not to compete is found to be too restrictive, it can still be enforced with some modifications made by the court. There are some defenses to a covenant not to compete available to an employee, for example, if the employer no longer continues in the business in the area or line of business. Or, if the employer has not enforced such restrictions on other employees. However, economic or other hardship to the employee is not a defense. Our office can help employers draft a covenant not to compete agreement, help enforce the agreement, as well as advise employees regarding whether to sign a particular non-compete agreement.

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