In general, covenants not to compete involve an employee in the state of Missouri who agrees not to work for competitors of their employer when they leave the company. Such covenants are often called "non-compete" clauses". Compensation might be paid for employees who sign the covenant, or at times the employment might be conditioned upon such an agreement.
When are Covenants not to Compete Unenforceable?
Foreseeing whether or not a judge will uphold a covenant not to compete is usually difficult. Even though the interests of an employer are significant, Missouri courts value a person's freedom to select the type of employment that they desire. Thus, courts will typically uphold only those covenants not to compete that they conclude to be reasonable. Those agreements that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around Hannibal that are unreasonably large.
Non-compete clauses are also limited in that they may only apply to competitors who are rationally related to the industry of the employer. Finally, there must be a valid 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?
Since covenants could restrict your rights, you may wish to hire a Hannibal, Missouri lawyer to review any provisions. They will be able to negotiate further changes to the covenant, and can draft an entirely new one that is acceptable to all parties if needed. Attorneys can provide valuable counseling to employers who are contemplating suing an employer who breached a covenant not to compete. They can also assist employees who have signed an agreement limiting their employment options.