How enforceable are non competes in Missouri?

How enforceable are non competes in Missouri?

Under Missouri law, the purpose of enforcing a noncompete agreement “is to protect an employer from unfair competition by a former employee without imposing an unreasonable restraint on the latter.” Indeed, a noncompete in Missouri is only enforceable to the extent that it is reasonable and no more restrictive than is …

When is a non-compete agreement is reasonable?

In practical terms, a non-compete agreement is reasonable if it is no more restrictive than is necessary to protect the legitimate interests of the employer. Non-compete agreements are enforceable to the extent they can be narrowly tailored geographically and temporally.

How does a non-compete clause work in Missouri?

However, courts in Missouri have the authority to give effect to an overly restrictive non-compete clause by refusing to give effect to its unreasonable terms, or modifying the terms of the contract to be reasonable.

Can a restrictive covenant be used in a non compete agreement?

You are completely entitled to use a restrictive covenant to safeguard your clients. A non-compete agreement can give you a lawful and unrestricted entitlement to maintain a positive relationship with your clients and to protect them from any former staff member trying to take them.

What are the conflicting interests in Missouri law?

The conflicting interests in the law are the freedom of the parties to negotiate contracts with unlawful restraints on trade. Missouri law attempts to balance these concerns when enforcing non-compete agreements.

What is the normal duration of a non compete agreement?

While non-competition agreements entered into in an employment context generally need to be limited in length to a period of six months to three years, in connection with the sale of a business, North Carolina courts have been willing to enforce longer non-competition periods, such as five years.

What you should know about non compete agreements?

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    Do they make you sign a non compete?

    A non-compete prohibits an employee from engaging in a business that competes with his/her current employer’s business. While an employer cannot require you to sign a non-compete, they may terminate, or choose not to hire you if you refuse to sign. Courts generally do not approve of non-compete agreements.

    Do you really need a non-compete agreement?

    When trade secrets really are a concern, using non-compete agreements may be valuable. Think partners, executives and other key personnel who can take customers and resources with them. However, for lower-level associates who don’t have trade secrets, non-compete agreements may not be worth the trouble.