Employment Contracts and Non-Compete Agreements
Employment agreements are typically presented by the employer with the aim of protecting themselves. An employee should fully understand the agreement prior to signing and know their rights. Employment contracts, non-competition agreements, and non-disclosure agreements can be part of the same document but serve different purposes.
Employment Contracts
Employment contracts outline the mutual commitments of the parties in the employment relationship. The contract usually includes provisions related to salary, benefits, termination, severance packages, and other employment-related issues.
Non-competition Agreements
Non-competition agreements, known also as restrictive covenants, limit the future employment of company employees. These agreements are mainly governed by state law. Many non-competition agreements are enforced and must be taken seriously. As a general rule, without an agreement, there is no law restricting an employee’s right to future employment.
Sometimes, non-compete agreements are accompanied by non-solicitation, confidentiality, and trade secret agreements that may result in an employee signing away rights to their work product with little or no recourse.
Enforcement of a Non-competition Agreement
An employee can challenge the enforceability of a non-compete for reasons including:
- The limit provided by the non-compete agreement is not essential to protect the employer's business interest
- The constraint prevents the employee from earning a living
- The restriction violates public policy
- The time frame of the non-compete agreement is unreasonable
- The geographic scope of the restriction is overly broad
- The non-competition agreement is unclear or vague
- The employee was terminated unlawfully
Non-competition Litigation Timeframe
Non-competition litigation moves at a swift pace and may require a quick response to a motion for preliminary injunction or a motion for a temporary restraining order.
Henrichsen Siegel provides legal advice to professionals and executives in navigating contract negotiations and disputes. The employment law team at Henrichsen Law Group, P.L.L.C. can guide you through all phases of the contract process to ensure that you are protecting your future and career. Our attorneys handle cases in the District of Columbia, Maryland, Virginia, New Jersey, Florida, and Georgia.
