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HELP! Non-compete/Non-solicitation

bgrimesbgrimes 45 Posts
in HR & Employment Law Vote Up0Vote Down
Is anybody out there 'well versed' in Non-compete/Non-solicition agreements?
I'd like to fax a copy of one to you for your opinion of its validity. Please respond ASAP.
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  • 4 Comments sorted by Votes Date Added
  • jsjs 32 Posts
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    I'm not well versed enough to feel confident about giving the okay on one. But I can tell you some about them.

    First, they are not as easily upheld in some states as in others. Also, what you have to do to make them upholdable in some states are different than in others. In Alabama for instance, you can make both a new hire and existing employees sign and you are probably okay. In most states, the new hire is okay but the existing employee must be compensated for signing (usually in the form of a bonus or promotion) for it to be upholdable. In some states, the compensation of gaining a job is not even enough, and you must give something to even the new employee. There are a couple of states that do not even recognize non-compete agreements.

    Second, you have to be very reasonable. The courts do not like non-compete agreements that they feel tend to keep the employee from making a living. You should, based on your industry and other considerations, have a limited time frame (6 mo to 1 yr, never more than 2 yrs), a limited geographical location (e.g. 150 miles from site), and a limit of what is considered competition. In other words, if your non-compete says that your employee may never work for anyone in a similiar industry anywhere, the judge is sure to throw it out. Some people have listed companies by name that they may not go to, if they know their competition specifically.

    You should type some keywords on your search engines and find plenty of free sample non-competes on the internet, which is what I did (after you check your state laws).

    This is one of the few areas where if you are concerned you may need to ever enforce the thing, that you seek an employment attorney's advice.

    Joel
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  • bgrimesbgrimes 45 Posts
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    [font size="1" color="#FF0000"]LAST EDITED ON 02-13-02 AT 11:26AM (CST)[/font][p]Thank you very much, Joel, for your reply. In my situation, it is not OUR company that wants to initiate a 'non-compete'....WE want to HIRE someone who signed one with a prior employer. It refers in the text to "restrictive covenant". I'm in Missouri. I have read that Missouri 'disfavors' restrictive covenants, however, this one is very well written. I have no company attorney to ask. I am also an HR 'newbie'. I am so glad I found HRhero, you guys are always a big help to me.
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  • Robert Kaiser MORobert Kaiser MO 15 Posts
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    I feel like I am responding to a personal ad. "I am a Missouri attorney who represents employers in employment and labor matters. Seeking employers with legal issues. Looking for long term relationship." If you need specific legal advice, I would be glad to help. Bob
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  • SystemSystem 5,885 Posts
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    x:D Bob, you're so funny.

    If anyone would like to find an attorney in the state(s) where you do business, check this page on HRhero.com - [url]http://www.hrhero.com/findanattorney.shtml[/url]

    Christy Reeder
    Website Managing Editor
    [url]www.HRhero.com[/url]
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