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Covenant-Not-to-Compete or Non-Compete Agreement

A Covenant-Not-to-Compete or non-compete agreement is enforceable if it protects the employer's reasonable competitive business interests and it is reasonable in duration, geographical scope, and line of business. A non-compete agreement protects the employer's reasonable competitive business interests if it protects against the employee's gaining some unfair advantage in competition with the employer, but does not prohibit the employee from using general knowledge or skill. The employer's reasonable competitive business interests include preventing the anticompetitive use of confidential information. Reasonable competitive business interests also include protecting close contact with the employer's customers or customer lists, or cost factors and pricing. However, the employer's reasonable competitive business interests do not include protecting against the employee's general knowledge and skill acquired during the employment.

Categories: Business Law

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