{"id":1941,"date":"2014-10-29T09:35:40","date_gmt":"2014-10-29T13:35:40","guid":{"rendered":"http:\/\/gtm.com\/business\/?p=1941"},"modified":"2024-08-30T11:29:41","modified_gmt":"2024-08-30T15:29:41","slug":"non-compete-agreements-company-one","status":"publish","type":"post","link":"https:\/\/gtm.com\/business\/non-compete-agreements-company-one\/","title":{"rendered":"Non-Compete Agreements: Should Your Company Have One?"},"content":{"rendered":"

A recent news story<\/a> discussed a sandwich restaurant chain requiring its workers to sign non-compete agreements, which essentially state that if a worker leaves, they cannot get a new job at another sandwich restaurant chain within 3 miles of the restaurant for two years. Members of Congress are now asking the Department of Labor\u00a0 and the Federal Trade Commission to investigate this policy.<\/p>\n

While this example seems to be pushing the envelope for non-compete agreements, employers should remember that all employees will discover and learn aspects about their jobs and about your company that may become a particularly sensitive issue when an employee leaves the company. While depending on state laws, employers can add a certain amount of protection through the use of properly written non-compete agreements.<\/p>\n

It is generally understood that a former employee may eventually be in a new job position that could be in competition with the former employer. For example, an electrician may not necessarily prevent a former apprentice from opening up his or her own business in the same neighborhood. However, an employer may restrict the former employee from entering into a certain scope of competition through a covenant not to compete. Since specific restrictions and steps can apply, such agreements and covenants should be reviewed by an attorney.<\/p>\n

In determining whether or not entering a non-compete arrangement makes sense for your business, the agreement should:<\/p>\n