A tennessee non compete agreement is a document that employers often use with their employees to clearly define the terms of what the employee may not disclose once he or she leaves the company. Courts look closely at the reasonableness of the agreement to determine if the agreement is enforceable.
When deciding whether a non compete agreement is reasonable tennessee courts will consider the following.
Non compete agreement template tennessee. A 3 year 50 mile radius restriction against an accountant from practicing business accounting and tax preparation work. Non compete agreements are generally not favored by the courts because they are viewed as restraints on trade. Having said that courts will uphold non compete agreements if there is a legitimate business interest to be protected and the agreement sets reasonable time and territorial limitations.
How tennessee courts treat non compete agreements varies by court and by the unique facts of each case. In tennessee non compete agreements or restrictive covenants are not always enforceable. Defendant thom orourke was an independent contractor for plaintiff trivia time an entertainment business providing live trivia games at bars and restaurants in nashville.
Tennessee courts take a reluctant approach to the enforcement. Examples of non compete agreements that tennessee courts have found to be reasonable include. Thom orourke the tennessee court of appeals upheld a trial courts determination that a post employment non compete agreement was unenforceable.
In my experience there is quite a bit of subjectivity involved when a court undertakes to determine if a non competition agreement is enforceable and if so to what extent. Tennessee employment agreements forms contracts us. The court modified the agreement which originally would have barred the employee from practicing his profession at all.
Many free forms are not valid. The paperwork provided here will therefore act as a contract between a minimum of two parties. A business disclosing information it does not want to be misused and a recipient who may.
The legal mechanism by which an employer can achieve such protection is a restrictive covenant known as a non competition agreement. This is most common when hiring employees as individuals will be exposed to sensitive information about an entity that could later be used against it if the employee decided to create a like business in the future. Provides tennessee employment forms and contracts forms for all your employment needs including employment agreements policies notices and warnings as well as many various contracts for employment matters.
The tennessee non compete agreement template is often used by businesses who wish to guard over their trade secrets and other confidential information. What makes a non compete agreement reasonable. In a recent decision julian hinson dba trivia time v.
There are no statutes governing non compete in tennessee. A non compete agreement is a document that attempts to block an individual or entity from potentially entering into competition with another party.
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