Small business answers — NOW!

Non-compete parameters

Question
What are the basic parameters of a non-compete agreement given by an employee? 
Answer
Generally, a non-compete agreement signed by an employee in favor of his or her employer must be worded so as to define two parameters:

- A reasonable time, two to three years, for example.

- A reasonable and specific geography, "within a 100 mile radius," for example. Or it could be restricted to something such as specific companies or an industry.

The operative word here, and the key for an employer to successfully defend a non-compete agreement is, reasonable. Otherwise, you stand an excellent chance of having the agreement thrown out by a judge, in favor of the employee. 
Brain Trust contributor: Attorney, Munley, Munley, and Cartwright
Related Categories: Human Resources, Legal, Management
© 2007, Small Business Network, Inc., All Rights Reserved.
Subject to the Terms of Use of AskJim.biz
Print this page   Bookmark this page   E-mail this page to a friend   Go back to previous page
AskJim ID: 999