Connecticut Non-Compete Agreement Attorneys
Hartford Employment Contracts Lawyers
Five TIPS for Employers With Non-Compete Agreements
1. Don't Assume Your Non-Compete Is Enforceable
Although non-compete agreements are generally enforceable in Connecticut and Massachusetts, courts will only enforce them if they are properly drafted and narrowly tailored to protect legitimate business interests. If you have an old non-compete agreement that you have been using for years and never had to go to court with it, do not assume it will hold up.
Courts will strictly construe a non-compete or non-solicitation agreement and only enforce a reasonable agreement. Generally, the agreement must be reasonable in geography, time, and scope. Additionally, the agreement must be tied to protection of legitimate business interests. Further, there must be adequate consideration.
2. Periodically Review Your Non-Compete Agreements.
The law varies and changes on specific issues with non-compete and non-solicitation agreements. If your company has legitimate business interests to protect, you should have your non-compete agreements periodically reviewed and changed for all new updates in the law. Additionally, there may be opportunities for you to update your non-compete agreements with existing employees. A well drafted non-compete is the most important step in protecting your business interests.
3. Narrowly Tailor the Non-Compete or Non-Solicitation Agreement
Using a "one size fits all" agreement may provide certain employees with grounds to challenge enforcement. The restrictions in the non-compete or non-solicitation agreement should be reasonable when considering the employee's role in the company. For example, an employee with high level access to confidential trade secrets and important clients warrants a more broad agreement. The same may not be true for a lower level employee.
4. Determine an Enforcement Strategy When the Employee Departs
The best time to determine an effective enforcement strategy is when the employee first resigns or is terminated. Waiting months to enforce the agreement could limit the value of the agreement. You may also lose an opportunity to come to an early agreement with the employee that avoids the costs of litigation.
5. Consult a Connecticut and Massachusetts Non-Compete Lawyer
Quality legal drafting of a non-compete agreement is critical to increasing the likelihood of enforcing the agreement. Additionally, an employer can obtain significant benefits by retaining counsel early on in the process once an employee departs. Further, early involvement of counsel frequently results in less damage to the employer's business interests and lower costs if a lawsuit is necessary.
Contact us today at 860-633-0580 for problems with non-compete agreements.
