Garrison Law partner Josh Goodbaum was recently quoted in a CT Mirror article about Connecticut non-compete agreements.
The article discusses when non-competition, or non-compete, agreements are enforceable. In the state, the enforceability of a non-compete is dependent on whether it passes a five-factor test. The factors are the length of time the agreement remains in effect, the geographic area it applies to, the fairness of the protection afforded to the employer, the extent of the restraint on the employee to work in their field, and the effect of the agreement on the public interest.
In regards to how the reasonability of a non-compete agreement is determined, Josh explained, “In theory, the pieces are supposed to be disjunctive — which means that the parts are evaluated independently and if the noncompete is unreasonable on any one of the five factors, then the whole noncompete is unenforceable…. But what’s ‘unreasonable’ is really in the eye of the beholder.”
Non-compete agreements are banned in a small number of states, including California, Colorado, and Minnesota, and are restricted in several other states. Federally, these agreements are currently under question, with administrative action expected sometime soon.
Read the full article here.