Business owners who want to keep key employees for business operations and to plan the owner’s business exit often turn to covenants not to compete (noncompetition agreements) to prevent employees
from competing (including taking other employees or customers) after the employee leaves the company.
The major obstacles to these noncompetition agreements are:
• They are enforceable in limited circumstances because public policy disfavors restrictions upon one's ability to earn a living; and
• Employers worry that asking or requiring employees to enter into such an agreement will cause the ...
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