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 typically 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. Some provisions that courts have considered to be unreasonable include terms that last for an unusually long period of time or that cover a geographic around Jackson that is unreasonably broad.
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, the employer must have a legitimate business interest behind its motivation for mandating a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
You might want to hire a Jackson, Missouri lawyer to review the covenant before signing any provisions that may limit or restrict your rights. The lawyer will then be able to negotiate any modifications to the contract as needed, or they can even draft a new one should it be required by one or both parties. When it comes to suing an employee for breach of a non-compete clause, an attorney can provide valuable advice. They will also be able to counsel employees who need advice for a covenant they have signed.