NONCOMPETE AGREEMENT

Most commonly an agreement where a newly hired employee ( prior to starting work) agrees in writing that, should the employee leave the company, he or she will not work for a competitor to the employer for a specified period of time and within a particular geographic area. Salespeople and other management level employees are usually the most common examples of employees who are often required to sign noncompetition agreements that prevent them from using the contacts gained by an employer to benefit a future employer. The agreement is typically included with an employment contract or a contract for the sale of a business. In general, courts view noncompetition agreements with disfavor as they will prevent a person’s right to work and will not enforce them unless the restrictions are very narrow. In some states they are more routinely upheld but generally not for agreements longer than one year in duration and a geographic region that is specific and not overbroad.