A covenant not to compete typically implies that a Washington employee makes an agreement not to work for any of their employer's competitors should they leave the company for any reason. These covenants are typically called "non-compete clauses". Employees who sign them can either receive compensation or simply be required to agree as a condition for their employment.
When are Covenants not to Compete Unenforceable?
Foreseeing whether or not a judge will uphold a covenant not to compete is typically difficult. Although the interests of employers are significant, courts in Washington also give importance 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. A court will normally hold non-compete clauses to be unreasonable if they involve unusually long periods of time or if they cover a geographic region surrounding Redmond that is excessively large.
Limitations on non-compete clauses must also be restricted to cover only competitors who are related in a reasonable way to the employer's industry. Lastly, an employer is required to have a legitimate business reason in its motivation for imposing a covenant not to compete on an employee.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
A Redmond, Washington lawyer can help you review the covenant before you sign any agreements that might limit your rights. The lawyer can help you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. An attorney can also give valuable advice when it comes to suing employees for breaching covenants, or counseling employees who have signed one regarding whether they can accept a different job.