Restrictions to prevent competition by a present or former employee are held valid when they are reasonable and necessary to protect the interests of the employer. For example, a provision in an employment contract which prohibited an employee for two years from calling on any customer of the employer called on by the employee during the last six months of employment would generally be valid. Courts will closely examine covenants not to compete signed by individuals in order to make sure that they are not unreasonable as to time or geographical area.
Covenant not to Compete Agreement between Employee and Medical Staffing Agency
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US-01641BG
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Consideration. Protection of a Legitimate Business Interest. Customer relationships. Confidential information. Reasonableness of the Restraint. Duration. Scope. Overbroad Covenant.
Study your competition. Write up the agreement. Have your agreement reviewed by a legal professional. Present the non-compete contract to your employee. If everyone is satisfied, sign and date the agreement.
The seller's ability to compete. The seller's intent to compete. The seller's economic resources. Potential damage posed by the seller's competition. The seller's expertise in the industry in question.
Certain restrictive covenants will be enforceable, if you are able to prove that they are: reasonable. necessary to protect legitimate business interests; and. of a duration no longer than is necessary to protect those interests.
Negotiate the non-compete Outside of failing to read the contract, the worst mistake employees make is being afraid to negotiate its terms. Remember, employers can't force you to sign a non-compete, so use that as leverage to remove terms that are unfavorable.
A covenant not to compete, also called a "nompete agreement" or "non compete clause," is an agreement where one party promises not to compete with the other party in a specified area for a certain period of time. A covenant not to compete can be found in an employment contract or a sale of business contract.
1Study your competition.2Write up the agreement.3Have your agreement reviewed by a legal professional.4Present the non-compete contract to your employee.5If everyone is satisfied, sign and date the agreement.
A covenant not to compete will be unenforceable if it does not protect a legitimate business interest or is broader than necessary to protect a legitimate interest. This is because such a covenant would unreasonably restrain trade and be contrary to public policy.
Voiding a non-compete contract is possible in certain circumstances. For instance, if you can prove that you never signed the contract, or if you can demonstrate that the contract is against the public interest, you may be able to void the agreement.