Make a Alaska Non-Compete Agreement

Applicable State Laws

Alaska has no specific state law that governs or guides non-compete agreements, unlike Minnesota, Delaware, Georgia, Oregon, Massachusetts, Montana, Florida, Nevada, and several other states. However, they are generally disfavored in Alaska court.

Nevertheless, non-compete agreements, should you choose to use one, are to be fair in their restrictions. This includes the period of time. Remembering that individuals have the right to procure employment, employers are encouraged to be fair, not imposing any greater than necessary hardship on the employee to maintain their trade secrets.

In many states, adequate consideration is another concern of court cases regarding such agreements. Alaska courts are no exception to this. Whether an agreement is against public policy is also a concern as the Alaska Supreme Court has held that a five-year statewide restriction could be remanded to a lower court for a modification to have part of the agreement enforced. Additionally, some courts have held that if a former employer has an active non-compete agreement, a new employer may be liable for hiring the new employee.

Protect your Alaska business by also using an Alaska non-disclosure agreement form. Download an Alaska non-disclosure agreement form now!

How to Write an Alaska Non-Compete Agreement

Before writing an Alaska non-compete agreement, keep in mind that the courts do not favor them. If you are hiring a new employee, you should check to determine if they already have a non-compete that is still active with their former employer because you could be held liable if you hire them and it is considered a breach of the terms of the existing agreement. Seek legal advice from a competent employment law attorney. An Alaska non-compete agreement should contain the following clauses:

• Purpose. This clause explains that the purpose of the non-compete agreement is to protect the business’s confidential information. It also defines the parties and includes an effective date. It refers to confidential information as proprietary information. Proprietary information may generally include current customers' information among other things.
• Non-compete. This clause may include the time period, geographic area restrictions, business practices, clients or customers, general competitors, business activities, specific competitors, specific activities, and employee solicitation.
• Time period. Some non-compete agreements may have a specific clause that explains the time period restriction and when that time begins. This may be either when the new employee or independent contractor begins working for your business or when their relationship is terminated.
• Purchase option. This clause states whether your business will allow the recipient to be released from the agreement if they pay a specified amount. If so, the amount of the payment is listed in this clause.
• Jurisdiction. This clause sets the laws that will govern the agreement. In this case, the laws of the State of Alaska.
• Confidential information. This clause states that the term "confidential information" as it is used throughout the agreement refers to any and all technical and non-technical information provided by your company and includes and is not limited to any data or other proprietary information related to products, inventions, plans, methods, processes, developmental or experimental products, intellectual property, software, databases, customer lists, vendor or supplier lists, marketing methods, reports, business plans, financial information, or other matter pertaining to your business or any of your clients, consultants, or licensees that is disclosed to the recipient under the terms of the non-compete agreement.
• Permitted disclosure. This clause explains when confidential information is no longer considered confidential. This generally happens when information becomes public through no fault of the recipient, when the information is discovered by the recipient on their own without a breach of another person, is released to the public after the business’s written consent, etc.
• Confidentiality. This clause states that the recipient acknowledges the information they access is confidential and that they agree they will not directly or indirectly disclose or communicate it directly or indirectly to another party unless they receive your company’s written consent. They also agree that they may not use the information for any reason except to further the business unless they first obtain the company’s written consent.
• Consultants and employees bound. This clause states that the agreement binds both consultants and employees. It also states that consultants and employees are on a need-to-know basis for the information and that they must keep the confidential information in the strictest of confidence.
• Return of materials. This clause states that when the agreement is terminated or when the business requests it, the recipient will promptly return all documents and all tangible material representing the company’s confidential information and any copies that exist. The company will also notify the recipient upon discovering any loss or unauthorized disclosure of the confidential information.
• Remedies. This clause explains the remedies your company is entitled to pursue if the recipient breaches the non-compete agreement. For example, your company may be entitled to seek the recovery of court costs and reasonable attorney fees, the award by a court of a temporary restraining order or preliminary injunction against the unauthorized use of the information, etc., as well as all other remedies available to your company under Alaska law or equity.
• Choice of law. This clause states that the laws of the State of Alaska govern the non-compete agreement.
• Entire agreement. This is the final clause of the agreement. It states that the entire agreement may only be amended in writing and only if the parties sign the amendment. Both parties also sign and print their names to show that they agree to the terms within the non-compete agreement. The parties should date their signatures.

Each party should receive a copy of the finalized non-compete agreement for their records.