Saturday, October 14, 2006

Employment: Non Compete agreements for employees

For simplicity sake please understand that duration of the restriction, geographic area of the restriction, scope of what is considered a 'competitive business' to your employer, and public policy all affect your employers chances of enforcing a non compete.

For example a six month restriction in a large geographic area may be upheld, and a three year restriction limited to State of Connecticut may also be upheld.

The reality is very fact specific. There are many cases where an attorney can only give you a rough idea of the enforceability of the restrictions because the facts that would lead to a conflict between you and a former employer may not have occurred yet, and because Courts do not act in a uniform way at all times. For example, there are some Connecticut trial courts that have held that an employer cannot enforce a non compete restriction against an employee where that company has previously violated a material component of the employment agreement within which the non compete restrictive covenant is contained. Such a fact may inform a court reviewing your matter, and such a fact may be persuasive to the Court, but they would not be bound to follow the decision of another Superior Court Judge. One other factor to consider is the simple concept that statutes and case law change from time to time. Be wary of anyone who claims to have a crystal ball.

Non compete clauses should be taken very seriously. Do not just assume that if a restriction is broad and vague that it won't be enforceable. Do not assume that just because you have a reason to believe that the employer won't enforce it against you that such notion is an absolute fact.

You should consult with an attorney before you sign any employment agreement, especially one with a non compete clause.


**Please note: This article is for general information and discussion purposes only. You should not use any information in this article as a substitute for consulting an attorney or other competent advisor. Nothing in this article should be construed as forming the basis of an attorney-client relationship. This article is not a solicitation.

Attorney Unger is licensed to practice law in Connecticut State and local federal courts only.