Drafting Noncompete and Non-Solicitation Agreements: Compliance with New State Statutes and Case Law
Lauri Rasnick, Member of the Firm, co-presents "Drafting Noncompete and Non-Solicitation Agreements: Compliance with New State Statutes and Case Law," a webinar hosted by Strafford.
Companies often require their employees to sign restrictive covenant agreements that include noncompete, non-solicitation and confidentiality clauses. A noncompete prohibits a former employee from working for a competitor, while a non-solicit typically prohibits a former employee from soliciting customers and employees.
State laws differ widely regarding restrictive covenants. Some states, like California, will generally not enforce a noncompete agreement. Other states, like Illinois, will apply a restrictive covenant if the employer provided adequate consideration to the employee for the covenant and the covenant is necessary to protect a company’s legitimate business interests.
Noncompete and non-solicitation agreements can be crucial to a company’s bottom line, but drafting and enforcing those pacts is tricky business. Counsel must know the legal standards that vary state by state and stay abreast of rulings and legislative changes that may happen without much fanfare. However, such legislation is garnering more attention since Massachusetts recently adopted new legislation.
The panel will discuss recent legislative and case law trends regarding noncompete and non-solicitation agreements, offer best practices for structuring permissible contracts, and explain how to determine whether existing agreements are lawful.
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