HR Chat: Non-Compete Agreement

You operate a payroll company in a major metropolitan area and have identified a highly qualified candidate for an open position. During the hiring process, you learn that the candidate previously worked for a competing payroll company and signed a non-compete agreement that is still in effect. While you are interested in moving forward with the hire, you are uncertain whether the agreement is enforceable and what legal risks your company could face.

Can you provide guidance on the potential legal ramifications of hiring an employee who is subject to an existing non-compete agreement? Specifically, what factors determine whether the agreement is enforceable, and what steps should an employer take to minimize legal risk before extending an offer?

When faced with a hiring decision involving a candidate who is subject to a non-compete agreement, it’s important not to navigate the situation alone. By consulting myHRcounsel’s network of experienced employment attorneys, you can receive timely, legally sound guidance tailored to your specific circumstances. The attorneys can help you assess the enforceability of the non-compete agreement, identify potential legal risks, and provide practical recommendations so you can make confident hiring decisions while minimizing your company’s exposure.