What Is A Covenant Not To Compete In South Dakota?
In South Dakota, a covenant not to compete generally requires that, upon leaving the company, an employee agrees not to be employed by their employer's competitors. A covenant not to compete may also be called a "non-compete clause". An employee who signs a covenant not to compete may receive compensation for the agreement, or in some cases the agreement is a condition for their being hired.
When are Covenants not to Compete Unenforceable?
Whether or not a judge will conclude that the covenant is enforceable can be difficult to know beforehand. While employer's interest are significant, the courts of South Dakota also put a high level of importance on a person's ability to pursue their desired employment opportunities. Consequently, a court will generally only uphold non-compete clauses which under the circumstances are considered to be reasonable. Those provisions that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around Sioux Falls that are unreasonably large.
The agreements must also deal only with those competitors whose line of employment is rationally related to the previous employer's. Lastly, there must be a legitimate business interest which motivates the employer's mandating a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
A Sioux Falls, South Dakota lawyer can help you review the covenant before you sign any documents that might limit your rights. The lawyer can assist you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. When it comes to suing an employee for breach of a non-compete clause, an attorney can give valuable advice. They will also be able to counsel employees who need advice for a covenant they have signed.
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Life in Sioux Falls
With a population of about 153,000, Sioux Falls is the largest city in South Dakota. Over the recent decades, Sioux Falls, South Dakota has become one of the most important centers for retail trade, health care, and financial services in the area. Sioux Falls was chartered in 1856 and is home to many large corporations such as Citigroup and Wells Fargo.In addition to being a vital economic hub for the region, Sioux Falls South Dakota boasts a number of attractions and local events. Every year the city hosts arts & culture events like the "Festival of Bands", "Jazz Fest", and a unique "Sculpture Walk" cataloguing the history and progress of the city.
Sioux Falls is also home to Empire Mall, the largest one-story shopping mall in the U.S. With its unique mix of economic growth and its thriving arts & culture scene, many residents and visitors appreciate the mix of opportunities that Sioux Falls offers.
Lawyers in Sioux Falls, South Dakota practice law in wide range of legal fields to serve community needs. Many Sioux Falls lawyers contribute to civic and social activities through organizations like the State Bar of South Dakota.
