While a late summer decision by a U.S. District Court set aside the FTC's total ban on non-competes, employers must still carefully consider whether or not to require employees to sign a non-compete as a condition to employment. Employers should bear in mind that state law may restrict its ability to require and/or enforce a non-compete. In addition, state law may limit the classes of employees from whom an employer may require a non-compete.
Employers should seek advice from counsel in order to carefully craft a non-compete that will both protect the legitimate business interests of the employer and survive any challenges to its enforceability. Depending on where an employee resides, a non-compete remains as a powerful tool which employers may use to protect its interests after an employee's separation from employment.
Careful consideration and planning are essential in order to ensure that non-competes will be enforceable against a particular employee. We often counsel employers on the advisability and scope of non-competes. Strategic counsel can help you determine whether a non-compete makes sense for your business.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
