Non-Compete Agreement Missouri

Non-compete Agreement in Missouri: What You Need to Know

If you`re a business owner or an employee in Missouri, you may have heard about non-compete agreements. These agreements are contracts between an employer and an employee that restrict the employee`s ability to work for a competitor or start a competing business for a certain period of time.

Non-compete agreements are becoming increasingly common in many industries, including technology, healthcare, and finance. In Missouri, there are certain laws and regulations regarding non-compete agreements that both employers and employees should be aware of.

What is a non-compete agreement?

A non-compete agreement is a contractual agreement between an employer and employee that restricts the employee`s ability to work for a competitor or start a competing business for a certain period of time. These agreements can be included as part of an employment contract or offered as a separate document.

The purpose of a non-compete agreement is to protect an employer`s trade secrets and confidential information from being used by a departing employee for the benefit of a competitor.

Non-compete agreements are intended to prevent employees from taking advantage of the training, resources, and access to confidential information that they received while working for a particular employer. They also help prevent a former employee from poaching the employer`s clients or customers.

Are non-compete agreements legal in Missouri?

Yes, non-compete agreements are legal in Missouri. However, there are certain restrictions and requirements that employers must follow in order to enforce these agreements.

Under Missouri law, non-compete agreements must be reasonable in terms of duration, geographic scope, and the type of activities that are prohibited. In general, a non-compete agreement that lasts longer than one year is considered unreasonable.

Additionally, the geographic scope of a non-compete agreement must be limited to the area where the employer does business. It is not reasonable to prohibit an employee from working for a competitor anywhere in the United States.

Finally, the type of activities that are prohibited must be related to the employer`s business. For example, it would be reasonable to prohibit an employee from working for a competitor in the same industry, but it would not be reasonable to prohibit an employee from working for a competitor in an unrelated industry.

What happens if a non-compete agreement is violated?

If an employee violates a non-compete agreement, the employer may take legal action to seek damages. In Missouri, employers can seek injunctive relief, which is a court order that prohibits the employee from engaging in the prohibited activities.

In addition, employers can seek monetary damages for any harm that they suffered as a result of the employee`s violation of the agreement. These damages can include lost profits, lost business opportunities, and legal fees.

On the other hand, if an employer tries to enforce an unreasonable non-compete agreement, the employee may challenge the agreement in court. In these cases, the court may modify or invalidate the agreement.

Conclusion

Non-compete agreements are becoming increasingly common in the modern workplace. In Missouri, these agreements are legal, but must be reasonable in terms of duration, geographic scope, and prohibited activities.

Employees should carefully review any non-compete agreement before signing it, and consider consulting with an attorney if they have any questions or concerns. Employers should work with experienced legal counsel to ensure that their non-compete agreements are enforceable and comply with Missouri law.