This form is a Post-Employment Restrictions on Competition for use with exiting employees exposed to commercial trade secrets or other confidential information as part of their job. This form includes a Noncompetition Covenant as well as other relevant clauses, such as a Savings Clause, a Consulting Option, and an Assignment Clause, that can be integrated into any agreement with the former employee.
Tennessee Post-Employment Restrictions on Competition, also known as non-compete agreements or covenants not to compete, are legal provisions used by employers in Tennessee to protect their business interests by limiting an employee's ability to work for a competitor within a certain time frame and geographical area after leaving their current employment. These restrictions aim to prevent employees from sharing or exploiting confidential information, trade secrets, customer relationships, or specialized skills that could potentially harm their former employer's competitive advantage. There are primarily three types of Tennessee Post-Employment Restrictions on Competition: 1. Non-Compete Agreements: These agreements prohibit employees from directly competing with their former employer after leaving the company. It restricts them from engaging in similar business activities or working for a competitor within a specified geographic area and for a certain period, typically ranging from six months to two years. 2. Non-Solicitation Agreements: These agreements specifically target the solicitation of clients or customers from the previous employer. It prohibits employees from directly or indirectly soliciting business from former clients or customers for a certain period of time. Non-solicitation agreements often supplement non-compete agreements to further protect customer relationships. 3. Non-Disclosure Agreements: These agreements focus on maintaining the confidentiality of proprietary information, trade secrets, and other sensitive knowledge or intellectual property owned by the former employer. Non-disclosure agreements restrict employees from disclosing or using such information for personal gain or to benefit a competitor, even after termination of employment. The enforceability of these restrictions in Tennessee is governed by common law and statutory limitations. Tennessee courts generally uphold non-compete agreements that are reasonable in scope, duration, and geographic area, while also striking a fair balance between protecting the employer's legitimate business interests and not unreasonably limiting an employee's ability to find new employment. It is worth noting that these restrictions may not apply to all employees uniformly. Tennessee's law recognizes certain exemptions for specific professions, such as doctors, lawyers, and broadcasters, as well as additional requirements for non-compete agreements signed in connection with a sale of a business. In summary, Tennessee Post-Employment Restrictions on Competition, which include non-compete agreements, non-solicitation agreements, and non-disclosure agreements, aim to protect an employer's business interests and prevent former employees from unfairly competing. These restrictions must comply with legal standards of reasonableness and fairness, taking into account scope, duration, and geographic considerations.
