Compliance

Currently, a noncompete agreement is more challenging to implement or enforce than ever before. This is due to factors such as: state law, court findings, and pressure from the Biden administration. More states are passing laws to limit or completely prohibit the powers of noncompete agreements. These laws don’t only apply to an employee signing a noncompete today. They will often also retroactively protect employees who previously signed a noncompete agreement. Notably, courts in nearly every state are throwing out noncompete agreements. These findings come from a desire to ensure businesses don’t prevent employees from earning their full potential in their chosen profession. HR experts and legal counsel often suggest employers review and update noncompete agreements. In 2022, these documents must articulate a legitimate business interest in protecting trade secrets, client lists, and confidential information regarding products, or services. Agreements are likely to be rewritten or thrown out by a judge if they: prevent employees from taking action for too long a period of time, apply to too broad a geographical area, or are overtly focused on hobbling an employee from competing professionally. In part one of this two-part series, MP’s HR experts share best practices every employer should know about 2022 noncompete agreements. Read the article to: 

– Find out when employees need to sign a noncompete agreement

– Understand how broad a noncompete agreement should—and shouldn’t– be

– Outline the potential future of noncompete agreements

– Get questions to help test the viability of a noncompete