More businesses are requiring their employees who regularly work with customers or who possess certain types of sensitive information to sign some form of contract restricting the employee’s ability to engage in competitive activity once the employment terminates.
In Our Judgment
I am regularly asked by employees to review various types of employment contracts, including employee non-competition agreements. More often than not these employees are Tennessee residents who work in a Tennessee-based office (or home office) and whose job duties are typically performed in Tennessee. Despite those factors, the contracts presented to them often contain two terms quite troubling to lawyers, but which go unnoticed by our clients.