In Tennessee, a covenant not to compete usually 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 them either does so as a condition to employment or they may receive compensation for the agreement.
When are Covenants not to Compete Unenforceable?
Whether a given judge will enforce a non-compete agreement is difficult to know in advance. Although the interests of employers are important, courts in Tennessee also give priority to an employee's freedom to choose the type of employment that they desire. As a result, courts usually uphold only those covenants that are consider to be reasonable according to the circumstances. Covenants not to compete that a court will categorize as unreasonable include provisions that last for a long duration or that restrict the employee to an unreasonable geographic area around Mcminnville.
Non-compete clauses are also limited in that they can only apply to competitors who are reasonably related to the industry of the employer. Lastly, the employer needs to have an acceptable business interest which justifies their motives in requiring their employee to sign a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Before signing anything that may restrict your rights, you may want to hire a Mcminnville, Tennessee attorney to review the contract. A lawyer can then negotiate to modify the covenant as needed, or may even draft a new one that is acceptable to both parties Employers can receive useful advice from an attorney should they decide to sue a worker for breaching a covenant, and employees who have signed such covenants can also benefit from a lawyer's counseling.