Protecting Employers Property From Harm by Former Employees: What Can Be Used if Non-Compete Are No Longer Valid?

Non-competition agreements employers have relied on to prevent former employee competition are increasingly unenforceable in the courts and may be banned altogether. Concerns that they unduly limit an individual’s ability to work have been joined by recent studies that show use is also causing several incidents of macroeconomic damage. Employers need to consider adopting alternative means to protect property interests that could be placed at risk by competing former employees. When doing so, care should be taken to use terms that comply with governing law and are made binding on employees only as necessary to protect employers’ at-risk property interests.