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Drafting noncompetition agreements that are reasonable

On Behalf of | Jun 7, 2019 | Business and Commercial Litigation

In business, one of the most important priorities should be protecting your assets from competitors. These assets could be in the form of trade secrets or practices and processes, but they could also be in the form of talented employees and the information that they have.

This is why drafting noncompete agreements are so important. Failing to put in place and enforcing noncompete agreements could lead to competitors benefiting from your work. However, when employers put in place unreasonable noncompete agreements, they can either deter talented people from wanting to work at the company or be unsuccessful in enforcing the agreement if a dispute arises.

Confirming the validity of a noncompetition agreement

In order for a noncompetition agreement to be valid, it must be reasonable, and therefore, should not severely impact the employee’s future career prospects. It should also protect a business interest, and be supported by consideration.

Drafting a noncompetition agreement so that it is reasonable

It can be difficult to objectively decide whether an agreement is reasonable or not. However, when drafting the agreement, you should consider the duration, scope, and geography. These details will be unique to the particular situation and will depend on the need for protection of the business interest in question. An employee with a higher level of expertise will likely be subject to more limiting agreements.

It is important that you invest time into making sure that your noncompetition agreements are both rigorous and reasonable. By understanding the intricacies of business law in Kentucky, you will be better equipped to do this with confidence.