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The Nevada Supreme Court recently confirmed that non-competition agreements that specifically provide for a court to blue-pencil unreasonable restrictions are enforceable.
The Employee specifically agrees that for a period of months/years after the Employee is no longer employed by the Company, the Employee will not engage, directly or indirectly, either as proprietor, stockholder, partner, officer, employee or otherwise, in the same or similar activities as were performed for
In order to be enforceable, a non-compete agreement must include an offer, acceptance, intent, and a benefit or consideration to the employee in exchange for his or her promise. The benefit could be as simple as getting the job or, for an existing employee, getting a promotion or raise.
Non-solicitation clauses that are clear, carefully drafted, and suitably retrained in temporal and spatial terms, are often enforceable.
After expiration or termination of this agreement, employee name agrees not to compete with company name for a period of number years within a number mile radius of company name and location.
After expiration or termination of this agreement, employee name agrees not to compete with company name for a period of number years within a number mile radius of company name and location.
Since non-solicitation agreements are generally more specific than non-compete agreements, they are more readily enforced by courts. To be enforceable, non-solicitation agreements must abide by certain rules: Valid business reason.
Escaping Nonsolicitation AgreementsDon't sign.Build your book independently.Carve out pre-existing relationships.Require for cause termination as the trigger.Provide for a payoff.Turn clients into friends.Don't treat clients as trade secrets.Invest in your own business.
A traditional non-compete stops an employee from working for a competitor in a certain geographical area for a certain amount of time after leaving the company. A non-solicitation agreement prevents an employee from poaching customers, contracts or other employees from the company that first hired them.
Key TakeawaysA non-compete agreement legally binds a current or former employee from competing with an employer for some period of time after employment ceases.Under such an agreement, the employee must not reveal any trade secrets learned during employment.More items...