Drafting a Non-Compete Agreement? Don’t Be Greedy.
There is no guarantee that a judge will view a company’s business interests and needs the same way the company does.
Many employers use non-compete agreements to protect their trade secrets and client relationships. These agreements limit how, when, and where a former employee can take actions that compete with the employer. Some employers know courts can reform overly broad agreements to make them reasonable, so these employers purposely draft expansive agreements with onerous restrictions on the employees’ activities. But, as Dallas non-compete attorney Keith Clouse cautions, an employer should avoid being greedy.
While a judge might reform an agreement that contains unreasonable restrictions, there is no guarantee that the judge will view the company’s business interests and needs the same way the company does. After reformation, a company could be left with a non-compete agreement that fails to adequately protect the company’s interests.
Instead of asking an employee to sign a broad non-compete agreement with the expectation (or hope) that a court will “fix” the agreement later, an employer should attempt to draft an agreement that is strong enough to protect the employer’s legitimate business interests yet reasonable from the employee’s perspective.
To learn more about non-compete agreements, contact an employment lawyer in your area. This article is presented by the employment law attorneys at Clouse Dunn LLP. For inquiries, send an email to email@example.com or call (214) 239-2705.