The non-compete agreements are extremely complicated especially when courts have to look at their enforceability. These types of agreements prohibit specific individuals such as employees, from involving themselves in occupations that could compete with the businesses after an employment cease with an organization or firm. Most companies now put this clause in the employment or contract for to safeguard themselves.  

In the US, many states do allow non-compete clauses to be enforceable in the court of law, but courts are generally not keen on to enforce such agreements. These agreements don’t find strong argument points most of the time. The point of contention is always what exactly is the legitimate interest of an employer. Many a times, such arguments have been considered null and void from the beginning as no one can be restricted from engaging in trade and profession of their choice.

TLB’s Uniqueness in The Enforceability Arguments 

TLB has lawyers in the team that have worked in large scale global contracts cases and in Merger and Acquisitions cases for international law firms.  Due to their massive skills, they are also consulting the top most law firms and companies in managing their contracts services. Therefore, the team has gained proficiency in all types of contracts’ clauses that possibly can be contemplated exists.

To determine the components of a non-compete agreement, the courts try to analyze few things while establishing their enforceability. This again differs across geographies and across states in the US. TLB’s team has created a repository in which these components are included for quick reference. Mostly, the courts would look at “scope of conduct forbidden”, “the location or state”, and if it’s indeed necessary or essential to safeguard the “interests of an employer”.  

The employers are always concerned about their business strategies, their clients’ list, their resources, pricings, their unique sales propositions, etc. and try their best to safeguard them from the competitors. This is essential as competitors are always looking out for these info to do better than others in their industry. The one largest source how these information are leaked are through the exiting employees. Therefore, having a strong non-compete agreement can help in its enforceability. TLB’s team is specialized in drafting non-compete agreements for many top organizations. Having worked with US attorneys across geographies, they well know the locations where the courts enforce these agreements and where the courts are not so inclined.  

How TLB can help:  

1. For protection of such interests, TLB’s team reviews the confidential information of an organization accurately puts them first in a draft so that nothing is a miss.  

2. They also keep a list of their competitors and how they can be threat as a competitor 

3. They further list down the possible violations that can be committed by an exiting employee.  

4. The team then prepares the list as to how these violations can be stopped.  

5. It is important to educate the employees before signing the non-competition clause once too, so key highlights are listed out.  

6. The employee is also notified about the possible consequences and how much he or she can perhaps incur in damages will be informed.  

7. All employees of a company many not be knowing all the legal implications of a whole lot of things, so particularly care is taken to note what can also inadvertently cause a violation of non-competition clause.   

8. The employee will also be given the list of the rival organizations. 

9. Meticulous care is taken to also list the time frame of the applicability of the non-competition clause.  

10. The team examines all implications and whatever grounds are against good morals are notified to the employee.  

Legal Research by TLB’s Team 

For enforceability of anything, prior similar case laws are the most binding. Therefore, TLB’s team also is skilled at doing legal research that can find all the significant cases for a specific jurisdiction. The case laws are read and summarized and kept as a ready reckoner when the need arises. The team establishes the validity of the impositions of a non-compete agreements through these case laws and determines how the proprietary rights of an organization is violated by an individual under the non-compete agreement. The reasonability of all the grounds under the agreement in each case is prepared separately by looking at the facts and the circumstances. As every state in the US has laws that can hugely be different from another, the cases are researched jurisdiction wise. 

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