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.
Nebraska Post-Employment Restrictions on Competition, commonly known as non-compete agreements, are contractual agreements designed to restrict an individual's ability to work for a competitor or start a competing business after leaving their current employer in the state of Nebraska. These restrictions aim to protect the employer's trade secrets, client relationships, and prevent potential unfair competition. In Nebraska, there are primarily two types of post-employment restrictions on competition: non-compete agreements and non-solicitation agreements. 1. Non-compete agreements: These agreements generally prohibit employees from engaging in similar activities or working in a similar industry as their former employer for a specified period of time and within a defined geographic area. The purpose of non-compete agreements is to prevent employees from using proprietary information, confidential trade secrets, or specialized training acquired during their previous employment to gain a competitive advantage over their former employer. 2. Non-solicitation agreements: These agreements restrict employees from soliciting the former employer's clients, customers, or employees after leaving the organization. The main goal of non-solicitation agreements is to prevent employees from poaching clients and customers or encouraging other employees to leave the company and join a direct competitor. It is important to note that Nebraska has certain statutory requirements and limitations regarding the enforceability of post-employment restrictions on competition. For a non-compete agreement to be considered valid and enforceable in Nebraska, it must be reasonable, geographic scope, and necessary to protect the legitimate business interests of the employer. Courts in Nebraska strive to strike a balance between safeguarding employers' interests while also allowing employees to seek gainful employment and pursue their chosen professions. Moreover, non-compete agreements are more likely to be deemed valid in Nebraska when they are entered into as part of an initial employment agreement, supported by adequate consideration (such as access to confidential information or specialized training), and are not overly burdensome on the employee's ability to find alternative employment. In summary, Nebraska Post-Employment Restrictions on Competition refer to non-compete and non-solicitation agreements that restrict employees from working for or competing with their former employer. These agreements aim to protect confidential information, trade secrets, and prevent unfair competition. However, their enforceability is subject to various legal requirements and must be reasonable to balance the interests of employers and employees.
