Beyond the noncompete

From Computerworld, June 2, 2009...

With the downturn in the economy, noncompete agreements have become more difficult to enforce. Think that means no limits? Think again.

Employee noncompete agreements prohibit employees from engaging in conduct competitive with their employers after the employment relationship terminates. In many states, such agreements have historically been the most effective way for a company to protect a company's investment in training, the development of special skills, trade secrets, confidential information and goodwill. Now, that's all changing. In recognition of our currently dismal economy and the need to permit people to work, some courts -- even in states that generally enforce noncompete agreements -- have demonstrated a reluctance to enforce these agreements.

Nonetheless, employees may find that they are no more free to pursue a new job than they were before. That is because most companies can arm themselves with several tools to achieve nearly the same protections that used to be obtained with a noncompete agreement. Given the change in the noncompete enforcement climate, many companies have already begun supplementing their noncompete agreements with such additional tools -- and technology companies are especially likely to do so.

Read more...