The Developing law of employee non-competition agreements

Abstract

This article tracks the rise in non-competition agreements once used mainly by companies seeking to control departures by executive-level employees who start at a competitor; and now such agreements are used for manager-level, and even hourly employees. Non-compete agreements adversely impact job mobility, wage growth and new professional opportunities, and they are potentially anti-competitive as an unreasonable restraint on trade. This article examines trends in the state law of non-compete agreements, and how courts evaluate legitimate employer interests, the hardships to employees, and the public interests. Some jurisdictions uphold non-compete agreements entirely; others modify overly-broad terms, while still others have ruled these agreements are unenforceable. There are many economic effects to non-compete agreements are implementing appropriate policies are necessary to accommodate competing interests of employers in maintaining their business , employees in their ability to work and seek new opportunities, and the public’s interest in maintaining a robust economy.