Among other things, in application of Copeland, the Court of Justice has stated that “the absence of geographical restriction makes it impossible to apply non-competition without a specific limitation of the class limiting contact. On the contrary, the non-compete clause creates a global ban in which Sigma attempted to prohibit employees from working in one way or another for one of its competitors worldwide. Oklahoma law (Title 15 O.S. section 219.A) severely limits discoloration agreements. Such agreements are not applicable if they exceed the limit imposed on the former worker to request “the sale of goods, services or a combination of goods and services from the established customers of the former employer”. The impugned restriction went beyond those limits. It was also unclear whether, under Oklahoma law, referral sources would be treated as “established customers of the former employer” when they regularly do business but do not make direct transactions. Non-competitions are usually stand-alone agreements or are incorporated into a primary contract, for example. B a contract of employment or a contract with an independent contractor. Non-competition law continues to develop, more in some States than in others. A new law or a decisive decision of a national court can have a huge impact on existing competition bans. Sometimes the new statutes apply only to agreements concluded after the date of entry into force of these statutes, but sometimes the statutes may concern both existing and new agreements.
Missouri`s position on the practice was presented in Durrell v. Tech Electronics, Inc. 2016, where the U.S. District Court for the Eastern District of Missouri held that employment as a result of an agreement was not an adequate counterpart to maintaining a non-compete clause. The end of the year is a good time to review these agreements and take the necessary steps to keep them legally compliant and up-to-date. Non-competition clauses can restrict several types of activities, such as. B those involving unfair competition, calls, confidential information and trade secrets: successful companies invest significantly in their employees in the form of training, relationships, exchange of confidential or proprietary information and other resources. If all goes well, a company`s employees can become valuable assets.
Therefore, an employer should protect the value of its “salaried assets” as well as the value of its other tangible and intangible assets. One of the ways a company can protect the value of its assets is by entering into a non-compete clause. In the event of a dispute between an employer and a former employee over a non-competition clause, the burden of proof lies with an employer to justify the interest invoked for its trade secrets and/or contacts with customers. However, if, in Missouri, a court finds that a non-competition clause is too broad and unenforceable, the Tribunal has the power to amend an overly restrictive non-competition clause by modifying the contractual terms. The analysis of the possibility of imposing a non-competition clause is generally determined on a case-by-case basis and takes into account the nature of the sector concerned, the duration and geographical scope of the restriction, as well as whether the worker has had access to customer lists and trade secrets. As a general rule, agreements with a term of more than two years are not applicable in Missouri. A non-compete clause preventing a worker from competing with the St. Louis County employer would generally be ineffective if the worker then worked exclusively in St. Charles County. Another non-competition clause was presented this year: HB 2326. .