Non-Compete Agreements – Top 10 Questions
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Question 10
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Question 10 – How can an employer create a valid binding non-compete agreement for its employees?

In short, make sure that the non-compete agreement is "reasonable." In particular, make sure the three main areas are reasonable (see Question 1), as to time, location, and in its purpose (e.g. what it is for). For example, don’t try to refrain your employees from working for anyone, anywhere, for any job. This type of non-compete agreement would likely be dismissed. The issues in a non-compete agreement of how long, and in what geographical radius, is often very fact specific, and a lawyer’s services would be worth the money and effort.

With that said, remember that business owners can place more restrictive provisions in a non-compete agreement in the sale of a business, as compared to employers with their employees.

Finally, we’ll wrap this article up with some main thought to keep in mind.