Mississippi Employee Restrictive Covenants

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Control #:
US-TC0916
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Description

Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.

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FAQ

A Mississippi Non-Competition Agreement is a contract that restricts an employee from competing with their former employer for a specific period after leaving the company. In Mississippi, non-compete agreements are generally enforceable if they meet certain requirements.

Apart from the "covenant hostile state" issue discussed above, the majority of jurisdictions within the US (either by statute or case law) will enforce restrictive covenants to the extent they are "reasonable" under the circumstances.

Covenants not to compete are frequently enforced to prevent a former employee from soliciting his or her former customers to buy competing products or services from the new employer.

California law bars covenants not to compete in nearly all circumstances. In Edwards v. Arthur Anderson, the California Supreme Court determined that the law should be read strictly, and not only void the ?unreasonable? noncompete clause, but all noncompete clauses other than those explicitly allowed in the code.

Although governed by individual state laws, common factors include whether the employer has a legitimate interest to protect; whether the geographic scope prevents the worker from making a living; the length of restriction; whether the agreement prevents workers from doing different work from what they are doing; and ...

A covenant not to compete has three elements: (1) a limitation on the work that may be pursued by the employee, (2) a definite time, and (3) a definite geographical area.

Covenants not to compete are frequently enforced where the former employer's "confidential information" may be used or disclosed unless the employee is restrained from competing.

California law bars covenants not to compete in nearly all circumstances. In Edwards v. Arthur Anderson, the California Supreme Court determined that the law should be read strictly, and not only void the ?unreasonable? noncompete clause, but all noncompete clauses other than those explicitly allowed in the code.

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Mississippi Employee Restrictive Covenants