Balancing Business and Law Blog

Enforceability of Noncompetes

February 11, 2009

In an economy where layoffs are an everyday occurrence, I am seeing more and more people looking hard at the noncompetes they signed with former employers to evaluate whether they are truly enforceable. Noncompetes are typically not favored in Washington State courts and are enforced rather narrowly. The questions that are evaluated are: 1) is the restriction on the employee necessary to protect a legitimate business interest of the employer; 2) is the restriction more broad than necessary to protect the business interests; and 3) the degree to which the public is injured due to the restriction limiting the skill and service warrants nonenforcement. In general, the "legitimate business interests" refers to trade secrets which the average employee or contractor does not have access to and therefore makes it difficult to enforce many noncompetes. Noncompetes these days are often written to be more anticompetitive than protecting the business' interests. That being said, a carefully drafted noncompetes can be enforceable. Another important note is that non-solicitation and non-interference provisions are much more favored and can provide strong protection to an employer.

Protecting You From Your Business

February 04, 2009

In this ecnonomy, being in business is riskier than ever. On Thursday, February 12, I'm speaking as part of the Work Smarter Forum (www.worksmarterforum.com). Topics will cover how to use legal tools to protect yourself from your business including business structure, insurance, and contracts. Visit the website for more information or to register.

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