Currently, Vermont non-compete agreements protect proprietary, confidential information, goodwill, relationships with customers, and investments made in special training. However, last year in 2019, lawmakers tried to pass a non-compete law to ban their use. In early 2020, lawmakers again tried to limit their use as supported by the Committee on Commerce and Economic Development. They recommend codifying case law and setting a wage threshold to protect low-wage employees from being injured by non-competes.
Although Vermont doesn’t have specific laws on non-compete agreements, employers are encouraged to be reasonable when drafting a non-compete agreement. Currently, they must not violate public policy. They should not cause undue hardship for former employees.
Protect your Vermont business by also using a Vermont non-disclosure agreement form. Download a Vermont agreement form!
To write a Vermont non-compete agreement, include the following clauses:
Both the employer and employee should sign and print their name. The signatures should be dated. Each party should keep a copy of the finalized non-compete agreement for their records.