Protecting Property or Restricting Trade? A Closer Look at Noncompete Agreements and Guidelines for Employers

To prevent former employees from utilizing a business ’ trade secrets or other proprietary information, employers are turning to the use of noncompete agreements. Such agreements may be viewed by the courts as a means for protecting the property of the employer or as a restriction on the former employee’s ability to earn a living. This article provides an overview of the literature and cases concerning noncompete agreements. In addition, guidelines are provided to assist employers in the writing of legal noncompete agreements and enforcing such agreements. Practical alternatives are also discussed that can potentially minimize the need for such agreements