NON-COMPETE AGREEMENTS. ARE YOUR AGREEMENTS ENFORCEABLE?
Does your company have a non-compete agreement? Are you concerned that when one of your key employees leave your employment that they will go to a competitor or start up a competing business and then start soliciting your clients?
Although the law vary throughout the United States (for example, non-competes in California are against public policy and are prohibited) Minnesota courts have long enforced non-compete agreement provided they are drafted properly. If they are not, they may not be enforced by the courts. The following elements of a well drafted non-compete are essential:
1. Is the non-compete supported by adequate consideration?
2. Is the non-compete necessary to protect the business interests of the former employer?
3. Are the provisions of the non-compete reasonable in terms of geographic restrictions and length of time. Even if a Court finds that the term of the agreement is too long or that the geographical restrictions are too wide, it may agree to edit the agreement to make it enforceable.
If you want to protect your efforts to obtain and retain your customers, you should consult with an attorney to draft or review your current contracts. An attorney can give you a legal opinion as to whether the non-compete agreement is enforceable. Forms found on the internet may not be geared to Minnesota law; they also might not meet the other requirements of Minnesota law to be legally enforceable.
Chase Law can assist you in drafting non-compete agreements and in reviewing your current policies and forms to ensure that your agreements comply with Minnesota law. Please contact us at 612 455-8944 or at info@chaselawoffice.com
