Create a Tennessee Non-Compete Agreement with our customizable template!
A Tennessee non-compete agreement is a type of employment agreement utilizing restrictive covenants that employers often use with their employees and independent contractors to protect legitimate business interests such as trade secrets and other confidential information from a competing business once the employment relationship ends. Non-competition agreements are legally enforceable documents that will hold an employee accountable should they divulge any important information to a competitor.
Generally, a non-compete agreement is used along with a non-solicitation agreement and a non-disclosure agreement for an employer's protectable interests. The goal is to stop unfair competition from becoming an issue.
Before drafting this document, the employer should seek legal advice from a law firm practicing employment law. This type of agreement cannot be used to protect general knowledge under Tennessee law because general knowledge doesn't provide an unfair advantage. Instead, a protectable business interest would need to be covered by this document. A lawyer would be able to advise an employer on enforceability in the event that a former employee must be sued in Tennessee courts, geographic scope, and even what to expect in a trial court setting.
Hiring an independent contractor to work for your Tennessee business? Download an independent contractor agreement form now!
Although non-compete agreements are generally disfavored in Tennesee because they cause restraints on trade, they are still legally enforceable documents. Non-compete agreements protect trade secrets, confidential information, information about the employer's customers, retention of existing customers, and investment in training or enhancing the employee's skills and experience.
The restrictions must be reasonable and cannot create an undue economic hardship on the employee. It also cannot be adverse to the public interest. In certain circumstances, physicians are exempt from non-compete agreements.
Protect your Tennessee business by also using a Tennessee non-disclosure agreement form. Download a Tennessee non-disclosure agreement form now!
To write a Tennessee non-compete agreement, include the following clauses:
The employer and the employee should sign and print their names. The signatures should be dated. Finally, each party should receive a copy of the executed contract for their records.
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