How Can a Noncompete Agreement Protect My Connecticut Business?

Law Offices of Peter V Lathouris LLC Dec. 31, 2019

A non-compete agreement is a type of contract that prohibits an employee from entering into competition against his or her employer. Workers often have access to sensitive information about clients, customers, business operations, practices, strategies, and marketing plans, all of which can be used against an employer. If you are a business owner, you may wish to use a noncompete agreement, also called a noncompete covenant or covenant not to compete, to prevent your employees from using skills and information gained during employment to compete with you in any way. It is important for business owners to obtain legal counsel regarding noncompete agreements, as these documents must meet certain criteria in order for them to be enforceable.

Noncompete Agreements in Connecticut

A Connecticut noncompete agreement is a legal contract that prevents an employee from entering into direct competition with an employer during his or her employment or after his or her employment ends. A noncompete agreement can also prohibit an employee from disclosing business secrets and proprietary information to other parties during and after his or her employment. Noncompete agreements must be limited in their scope and duration in order to be enforceable by the court. Many noncompete agreements include a one- or two-year restriction period, but the amount of time the employee is prohibited from entering into competition can vary based on a range of factors. To be legally binding, a noncompete agreement can only prevent an employee from working in certain geographic areas. Blanket noncompete agreements that do not specify a reasonable time period and location stipulations will typically not be upheld by the court.

Most noncompete agreements include the following information:

  • The date on which the agreement begins

  • The time period during which the employee is prohibited from working in competition with the employer

  • The specific geographical locations covered by the agreement

  • Grounds or reasons for presenting the agreement

  • Information regarding how the employee will be compensated for agreeing to the terms of the noncompete agreement

Contact a Fairfield County Business Contract Lawyer

Noncompete agreements are one important way that business owners can help prevent employees from using valuable information gained during employment to enter into competition with the business. However, in order to be valid, noncompete agreements must meet certain standards. To learn more about how a noncompete agreement can help safeguard your business, contact an experienced Greenwich business law attorney at the Law Offices of Peter V. Lathouris, LLC. We can assist with contract review and drafting, business disputes, and more. Call us today to schedule a confidential consultation.