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Important Terms to Include in Non-Compete Agreements Time and Geographic Scope.Tolling of Non-Compete Period.Protectable Interests, Injunctive Relief, Attorneys' Fees, and Costs.Choice of Law and Forum Selection.Assignment.Material Job Changes.Right to Inform New Employer.

An agreement for employees not to work for a competitor, not form a competing business, and to maintain confidentiality during employment. This agreement may or may not be enforceable depending on state law.

Example 1: Noncompete agreement. Nondisclosure and Noncompetition. (a) At all times while this agreement is in force and after its expiration or termination, employee name agrees to refrain from disclosing company name's customer lists, trade secrets, or other confidential material.

In order to be considered valid, a non-competition agreement must: Be supported by consideration at the time it is signed. Protect a legitimate business interest of the employer. Be reasonable in scope, geography, and time.

In contrast, in many industries, a Non-Compete with a duration of 6-months will be considered reasonable, and therefore enforceable. The general rule is that the duration of the agreement should not exceed the time reasonably necessary to protect the employer's legitimate business interests.

Non-competes restrict where and when you can work after leaving your current job. Such agreements prohibit an employee from working for a competitor or from starting her own competing business within a geographical area for a certain period of time after leaving her job usually between six months and two years.

You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.

A traditional non-compete stops an employee from working for a competitor in a certain geographical area for a certain amount of time after leaving the company. A non-solicitation agreement prevents an employee from poaching customers, contracts or other employees from the company that first hired them.

A reasonable non-compete radius should be between three to five miles. We've seen radius as large as 20 miles! If you agree to a radius that is too large, you could easily be prevented from practicing in an entire city. Negotiate the shortest non-compete period.

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Arthur Andersen LLP, 44 Cal. 4th 937 (2008), California law embodies a fundamental policy in favor of competition.Signing a non-compete agreement doesn't mean you give up your employment rights. Recipient shall strictly maintain the confidentiality of the Proprietary Information. Mac Meets a Non-Compete Agreement Disguised as a Trade Secret Contract. No delay or omission in the exercise of any right or remedy shall impair such right or remedy or be constructed as a waiver. Non-Compete Agreement. Agreement, please see Confidential Exhibit 3. It pays to work at nuclear power plants.

Orange California Sample Noncompete and Confidentiality Clauses

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