Hawaii Clauses Relating to Venture Nonexecutive Employees
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FAQ
You agree that at no time during the term of your employment with the Company will you engage in any business activity which is competitive with the Company nor work for any company which competes with the Company.
Typically, non-compete agreements arise between an employee and employer or a purchaser and seller of a business. The agreement typically provides that the employee (or seller of a business) will not enter into the field of work, or a similar field, to that of the employer (or purchaser) for a certain length of time.
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.
Under Hawai?i law, pursuant to HRS § 480-4(a), ?Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce in the State, or in any section of this State is illegal.? HRS § 480-4(c) then enumerates several types of restrictive covenants that may be lawfully entered ...
Colorado, Illinois, Maine, Maryland, New Hampshire, Oregon, Rhode Island, Virginia, and Washington prohibit non-compete agreements unless the employee earns above a certain salary threshold. Other states, like Iowa and Kentucky, limit the use of non-competes for certain professions such as healthcare workers.
I agree that during the course of my employment and for a period of twelve (12)months immediately following the termination of my relationship with the Company, whether I resign voluntarily or am terminated by the Company involuntarily, I will not, without the prior written consent of the Company, whether paid or not: ...
You agree that at no time during the term of your employment with the Company will you engage in any business activity which is competitive with the Company nor work for any company which competes with the Company.
Working for a competitor company or competing individual. Starting a company that offers the same products or services. Developing competing products or providing competing services. Recruiting former colleagues to join their new business, although this can also be done through a non-solicitation agreement.
