This form is a Post-Employment Restrictions on Competition for use with exiting employees exposed to commercial trade secrets or other confidential information as part of their job. This form includes a Noncompetition Covenant as well as other relevant clauses, such as a Savings Clause, a Consulting Option, and an Assignment Clause, that can be integrated into any agreement with the former employee.
Connecticut Post-Employment Restrictions on Competition, commonly known as non-compete agreements, are enforceable contracts designed to restrict employees from engaging in competitive activities or working for a competitor after leaving a particular employer. These restrictions are intended to protect the legitimate business interests of the employer, such as trade secrets, client relationships, or confidential information. In Connecticut, there are two primary types of post-employment restrictions on competition: non-compete agreements and non-solicitation agreements. 1. Non-Compete Agreements: These agreements prevent employees from engaging in a similar profession or working for a competing business within a certain geographic area and for a specified period after leaving their current employer. Non-compete agreements must be reasonable in terms of duration, geographic scope, and the scope of prohibited activities to be enforceable under Connecticut law. 2. Non-Solicitation Agreements: These agreements prohibit employees from soliciting or targeting the customers, clients, or employees of their former employer for a certain period after leaving the company. Non-solicitation agreements are generally considered more enforceable than non-compete agreements and are less restrictive in nature. To be valid and enforceable in Connecticut, both types of post-employment restrictions on competition must satisfy certain conditions: a. Consideration: The employee must receive something of value, such as a promotion, salary increase, or access to confidential information, in exchange for agreeing to the restriction. b. Protection of Legitimate Business Interests: The agreement must be necessary to protect the employer's trade secrets, confidential information, or other legitimate business interests. It should not excessively restrict the employee's ability to find suitable employment in the same field. c. Reasonableness: The restrictions imposed by the agreement should be reasonable in terms of duration, geographic scope, and the nature of the activities restricted. Overly broad or unreasonable restrictions may render the agreement unenforceable. d. Writing Requirement: Post-employment restrictions on competition in Connecticut must be in writing and signed by both parties to be enforceable. It is important for both employers and employees to understand the implications and limitations of Connecticut's post-employment restrictions on competition. Consulting with an experienced employment law attorney can help ensure compliance with relevant laws and protect the interests of all parties involved.
