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Noncompete Agreements Appearing in Unusual Fields

// Dallas, Texas, United States // Attorney Keith Clouse (Blog) // Keith Clouse

A news article highlighted a recent trend in noncompete law: the expanding use of noncompete agreements. Whereas noncompete agreements once were used primarily in the fields of technology and sales or for high-ranking executives, they are now appearing in agreements between employers and event planners, chefs, yoga instructors, textbook editors, and camp counselors.

Noncompete agreements prohibit an employee from working for the employer’s rivals for a period of time. They limit how, when, and where an employee can “compete” with a former employer. Noncompete agreements are designed to protect an employer’s business relationships, confidential information, trade secrets, and investments in employee development. They offer many advantages to employers.

But, an employer should be cautioned against overusing these agreements. Typically, they should only be entered into with high-level employees, employees who access and use sensitive company information, and employees who form relationships with clients on behalf of the company. Requiring all employees to sign noncompete agreements dilutes the importance of the agreements. For example, it could be difficult for an employer to prove that it had a legitimate business interest in protecting the business relationships a retail clerk makes or the investment in a summer camp counselor’s training.

This article is presented by the Dallas employment lawyers at Clouse Dunn LLP. To speak to a Dallas employment lawyer about a noncompete issue, send an email to debra@clousedunn.com or call (214) 239-2705.

Contact Keith Clouse

KEITH A. CLOUSE

Clouse Dunn LLP

214.220.2722 214.220.3833 ( fax) keith@clousedunn.com

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