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Many employers seek to prevent employees from competing against them in the future by requiring them to enter into non-compete agreements. A non-compete agreement typically restricts a person from engaging in a competing business with a former employer within a certain geographic area for a specified time period. Other agreements may restrict contact with customers for a certain time period. Issues arise when a person bound by a non-compete agreement interviews for a new job.
An employer seeking to hire a particular job candidate should establish whether the candidate has entered into a non-compete agreement with a previous employer. If so, the employer must carefully evaluate the situation. Keith Clouse, a Dallas employment lawyer who frequently handles non-compete issues, suggests that a prospective employer be mindful of the following considerations.
First, the prospective employer should obtain a copy of the non-compete agreement. By reviewing the agreement with counsel, the employer may be able to determine whether the agreement would apply to new employment and if the agreement appears to be enforceable. If it appears that the agreement does apply and that it would be enforceable, the employer must determine whether it wishes to attempt to negotiate with the candidate’s former employer and/or whether it is willing to litigate the matter. The prospective employer must evaluate the job candidate’s potential value to the company against the expense of resolving any issues surrounding the non-compete agreement.
If you would like to speak to an employment law attorney about a non-compete matter, please contact the employment lawyers at Clouse Dunn LLP at info@cdklawyers.com.
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