Noncompete Agreements
Non-Compete agreements prohibit an employee from working for a certain time within a certain geographic area. There are many aspects to handling non-compete agreements.
From an Employer's perspective they have often invested a great deal of money in building a client base perfecting processes, inventions, trade, secrets and customer lists, Employers want to protect this information and often insist on a non-compete agreement.
As a general principle a non- compete agreement has to be properly limited in geography, and time and it must protect a legitimate interest of the employer. A non-compete agreement must be narrowly tailored to meet the needs of the employer, which will be balanced against those of the employee.
Problems From Non-Compete Agreements
There are several different ways that non-compete agreements can impact the employee once an employee leaves a business. If the employee finds another job, the former employer may have a claim or file a case against the employee to make him quit his new job.
If an employee takes a position which the former employer believes is in violation of the non-compete agreement, it may sue the employee seeking a court order to prevent the employee from working. An employer must show that the employee has in fact taken or threatened to take an action in violation of the non-compete agreement. An employer must also prove to the court that the non-compete agreement is valid — that it is for a valid purpose and limited in time and geography.
We frequently consult with clients when issues arise concerning a non-compete agreement. Call us today at 215-517-6651 or contact us online to discuss your legal options.