Employers must consider a variety of factors to determine a
potential candidate's fit. Salary requirements, skill set and
personality are, of course, all very important. But one
under-appreciated factor to consider is whether your candidate has
a noncompete agreement with a former employer. In 2016, the Obama
administration estimated that 18 percent (30 million) of American
workers were covered by noncompete agreements. Failing to account
for this growing trend can lead to unanticipated headaches and
unwelcome legal costs.
In general terms, noncompete agreements place limits on an
employee's ability to leave one employer to work for a
competitor. They may be limited by geography or time, and several
states have their own laws governing the permissible scope of such
agreements. These scopes are often challenged after a former
employee begins work for a competitor and the former employer seeks
to enforce the noncompete agreement.
