Essay On Non Competition Agreements

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A non competition agreement in an employment contract is a contract between the employee and employer that says the employee cannot work for competitors of the employer for a certain amount of time after the employee has left the company. The best way to determine if the courts have something enforceable is with this question, does the “agreement reasonably balance the employer’s legitimate business interests with the employee’s freedom to choose his or her employment” (Fryberger). These agreements are here to protect the employer’s confidential information and most importantly, the entirety of the business. These non competition agreements help keep the employer in business, but there are certain circumstances that the courts will not enforce these agreements, such as if the agreement is too unreasonable and does not allow the individual to make a living, this could mean the duration of time they are restricted for and/or restrictions on where they can’t work in that geographic …show more content…

Business owners are now realizing that these agreements are somewhat bad for business. This is because when the business hires someone new, that person has to sign this document. The person might feel like if they leave their job than there will be nothing for them to do. This agreement leaves no space for the employee to work with and commonly forces the employee to move or find a new job, different from their last. These agreements are also difficult to get the courts to enforce them because most courts frown upon this document. Many employers will try keep a wide scope of restrictions on the agreement to make sure that their business is safe, but the court will most likely narrow that scope and enforce it. Sometimes the court will even refuse to enforce the whole agreement “if it finds it was clearly intended to prevent legitimate business competition by the former employee”

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