Peter A. Steinmeyer, Member of the Firm in the Labor and Employment practice of Epstein Becker Green, was quoted in Law360 in “3 Tips For Keeping Noncompetes In Check,” by Scott Flaherty. (Read the full version – subscription required.)
Following is an excerpt:
“Asking every single employee to sign … could very well lead a court to strike down a noncompete,” Peter Steinmeyer, member in Epstein Becker Green PC’s employment practice, said. “It really undercuts the credibility of any purported legitimate protectable interest.”
Beyond raising questions about whether an agreement is enforceable, attorneys said there are other factors that weigh against having everyone sign the same agreement. Forcing everyone to sign a noncompete could, in turn, drive some savvy prospective employees away or decrease worker morale.
“You run a real risk that you won’t be able to attract a talented workforce,” Steinmeyer said. He added that employers might want to ask themselves, “What kind of atmosphere does that create?” …
“They’re better off, if they want to be able to enforce it, to draft it narrowly to focus on what they really need,” Steinmeyer said. “It shouldn’t be any broader than it needs to be.”