Legal Insights for Entrepreneurs: Non-Compete Agreements

This is the second in a multipart series of legal tips for entrepreneurs.  A non-compete agreement is designed to prevent an employee from working for a competitor for a period of time after his/her employment ends with the current employer.  Many emerging companies require their key employees to sign non‑compete agreements.  This seems to  make perfect sense as the best way to protect your business.   However, as a public policy, courts generally disfavor non-compete agreements because they effectively limit the capability of the employee to find another job.  Therefore, special attention should be given to the drafting of any non-compete agreement to promote its enforceability.  Read more on non-compete agreements