Q: Can I ask employees to sign a non-competition agreement?
A: Yes, under certain circumstances. Non-competition agreements are regulated by state law. Some states restrict when these agreements can be used. If allowed, most states require the agreement to be reasonable both in geographic scope and duration. Such agreements should be written by legal counsel and narrowly-tailored to protect the employer’s interests without unduly infringing on the employee’s ability to be employed and earn a living. Non-competition agreements are largely unenforceable in Colorado and Utah has a law concerning this topic. If considering a non-competition agreement a consultation with an attorney is essential. Employers Council has attorneys who can assist you with this.