Agreements Excluded from Nca

Agreements Excluded from Non-Compete Agreements

Non-compete agreements (NCAs) are commonplace in most industries. They are agreements that prohibit an employee from engaging in a competing business or working for a competitor for a certain period after leaving their current employer. These agreements are meant to protect a company`s trade secrets, confidential information, and intellectual property. However, not all agreements can be included in an NCA. Here are some agreements that are excluded from NCAs:

1. Agreements that violate antitrust laws

An NCA cannot be used to create a monopoly or restrain trade. Any agreement that violates federal and state antitrust laws cannot be included in an NCA.

2. Agreements that restrict customer choice

An NCA cannot restrict a customer`s choice to do business with a company or individual. Any agreement that limits a customer`s ability to work with competitors violates the law and is not allowed in an NCA.

3. Agreements that prevent an employee from working in trade or profession

An NCA cannot prohibit an employee from working in their trade or profession after they leave their current employer. Employees have a right to earn a living, and any agreement that restricts their ability to do so is not enforceable in court.

4. Agreements that are too broad

An NCA must be specific and reasonable in scope. It cannot prohibit an employee from working in any job that is remotely related to their current job. Any agreement that is too broad and unreasonable will likely be struck down by a court.

5. Agreements that violate public policy

An NCA cannot violate public policy. Any agreement that is against the public interest, such as agreements that restrict an employee`s ability to report sexual harassment, is not allowed in an NCA.

In conclusion, NCAs are a valuable tool for protecting a company`s trade secrets and intellectual property. However, they must be carefully drafted to ensure they comply with state and federal laws. Employers should consult with legal counsel before including any agreement in an NCA to ensure it is enforceable in court.

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