Labor: 5 things to consider before drafting a noncompete agreement

How to craft an agreement that protects your company and is enforceable

As the economy begins to turn around and companies start to make more hiring decisions, employers may want to reform their existing noncompete agreements or to develop new agreements that contain post-employment restraints. However, before putting pen to paper, a number of factors should be considered in developing a noncompete agreement that will meet the needs of the company and also withstand judicial scrutiny. Accordingly, the following issues should be addressed when drafting or revising a noncompete agreement:

1. Identify what the company is trying to protect

4. Research the best language to use

Once the component parts of the agreement have been decided upon, companies should conduct additional research. Is there a seminal case in the company’s particular industry or jurisdiction “blessing” particular language? Alternatively, is there a negative case suggesting that a noncompete in that particular industry would rarely be appropriate?

Contributing Author

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Jeremy Hawpe

Jeremy W. Hawpe advises and represents employers in the health care, insurance, staffing, and transportation industries in a broad range of employment law matters. He...

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