Bass, Berry & Sims attorney Bob Horton authored an article for HR.com providing insight on how companies can draft strong noncompetes and restrictive covenants to balance business protections with enforceability across federal and state law. Bob shared five general guidelines for companies to consider, including:
- Understand Applicable State Law and Do Not Assume Choice of Law Provisions Will Be Enforced
- Narrow the Length and Geographic Scope and Be Mindful of State Law Provisions Regarding Reformation of Overbroad Agreements
- Consider Relying Solely on Non-Solicit Agreements for a Reasonable Period of Time
- Specifically Target Which Employees Must Sign Restrictive Covenants
- Don’t Forget About Confidentiality Agreements
“While not an exhaustive list, being mindful of these considerations when drafting a noncompete agreement or other restrictive covenant can help develop agreements more likely to be enforced,” said Bob.
The full article, “How to Draft Strong Noncompetes and Restrictive Covenants,” was published by HR.com on December 2 and is available online.