Under Connecticut law, a non-compete clause can only be imposed on a former employee if it is “reasonable.” What is “reasonable” for a non-compete clause is determined by a five-part test. The parties are: before signing a document that affects your employment or right to work, including a non-compete agreement, you should first speak to an experienced labour law professional to find out what your rights are and what obligations the Contract may impose on you. Any non-competitive agreement must be appropriate in space. Large employers define geographic scope around the world and at the federal level. Small employers use more localized areas, such as 15 miles from any office, an example would be a real estate agency. The courts here in Connecticut will look at that as a factor, but that is not the control factor. Courts will not impose a non-compete ban if the company has multiple offices in Connecticut and limits staff to 15 miles from each Connecticut office; Employment in Connecticut is virtually prohibited. William Raveis Real Estate is a company that uses this type of geographic area of competition. Recently, the Court of Justice informed Raveis that this form of agreement was not applicable. At first glance, such agreements seem very useful. The sudden loss of a major seller, for example, often creates a triple shame. First, an experienced member of the sales team has disappeared, along with an in-depth knowledge of your business, products, pricing policies and customers.
If you want the courts to enforce your non-competition agreement, you must ensure that it is fair and justified. The courts will look at these two things separately. Many companies are trying to stem this situation by signing non-competitive agreements between their employees. All Connecticut lawyers will tell you that these agreements are difficult to enforce. The law is positive in all agreements that restrict a person`s right to work. If the employer is not competitive, we always check whether the employer imposes these agreements consistently. The role of the employer is to show that it applies the agreement in a consistent way to all. But if some workers withdraw with non-compete agreements and create a competitive hedge fund in competition with their former employer, such as Bridgewater Associates, the courts will refuse to protect the employer. Go to the Connecticut Superior Court website and look for actions by employers to prosecute employees. Also ask around and see if other employees who left received bad letters of omission and exit when they were going to work for a competitor.