Non-compete agreements are contracts between employers and employees in which employees agree not to compete with their employers following termination. While such agreements can offer employers significant protection, they must be drafted carefully to ensure enforceability:

·        Non-compete agreements should be in writing and signed by the employee;

·        Non-compete agreements should be mutual, including employer obligations to employees as well as employee obligations to employers;

·        Employees should receive some form of consideration in return for signing the agreement;

·        Non-compete agreements should be reasonable in duration and restricted to limited geographical areas; and

·        Non-compete agreements should be narrowly drawn to protect employers' legitimate business interests

The requirements for an enforceable non-compete agreement can vary from state to state.  Management 2000, an Indiana PEO, has the HR management tools necessary to research states’ requirements and help employers develop effective and enforceable non-compete agreements. For more information about all the human resource management services provided by Management 2000’s HR Department, call (317-549-2000 or visit www.management2000.com.