Dunlap & Seeger, P.A.
schedule a consultation 507-316-0628
We Know You
We work with local clients and clients throughout the country who are looking to continue to build a sense of community in Rochester.

The influence of 'reasonable' in crafting noncompete agreements

If you are an entrepreneur launching a new business in Minnesota there are a lot of issues you need to address. If the product or service you offer is unique or if you plan to leverage a proprietary way of doing things that gives you an edge, you want to protect those things.

To be sure you do the right things at the right time and in the right way it's important to work with experienced business formation attorneys, regardless of the size of the enterprise you want to create. The due diligence required may involve a great deal, up to and including crafting employee agreements that comply with state and federal law.

If you think this is something that can be shrugged off you need look no further than recent newspaper headlines. We suspect there are many readers of this blog aware that e-commerce giant Amazon is suing Minnesota-based Target. The bone of contention is that a former vice president of Amazon operations is slated to start working for Target as its chief supply chain and logistics officer at the end of this month.

Target's statement announcing the new hire touts that his "leadership and experience will be a tremendous asset" that will fuel business growth objectives.

Amazon's suit says the man signed an 18-month noncompete agreement and that it needs to be enforced. The company says Target is a direct Amazon competitor and that the executive is privy to Amazon's plans for going up against the big red bullseye .

Target says the case is without merit, but that is something for the court to decide. In the meantime, here are questions any court would likely ask to determine a noncompete agreement is enforceable.

  • Are the business reasons for the agreement reasonable?
  • Did the employee receive any clear benefit for signing the agreement?
  • Is the time limit on noncompetition reasonable?

Reasonableness is clearly important, but what that means is subject to interpretation. And so it is also clear that anyone employing a noncompete agreement needs to be sure their legal argument for it holds water.

No Comments

Leave a comment
Comment Information

Contact Us Today Our lawyers listen carefully to your goals and concerns while helping you obtain the best results possible. Call 507-316-0628 or fill out the form to email our team.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Dunlap & Seeger, P.A.
30 3rd Street SE
Rochester, MN 55904

Toll Free: 800-636-2689
Phone: 507-316-0628
Fax: 507-288-9342
Rochester Law Office Map