Whelan Security attempted to support the two former employees on the basis of the agreements. The application was rejected by the Tribunal, which issued a summary judgment in favour of the staff and stated that the restrictions were excessive and not proportionate in terms of duration and geographical scope. The Missouri Court of Appeals quashed the case, but the case was referred to the Missouri Supreme Court. A non-competition agreement, which is initially enforceable by an employer, is not necessarily applicable if the employer is acquired by another company or merges with another company. Successful companies invest heavily in training, relationships, the exchange of confidential or proprietary information and other resources. If all goes well, a company`s employees can become valuable assets. Therefore, an employer should protect the value of its “wage” assets as well as the value of its other tangible and intangible assets. One of the ways a company can protect the value of its assets is through non-compete agreements. Non-compete agreements are governed by Section 416.031 of the Missouri Revisor of Statute. Non-compete agreements become unfavourable in Missouri, but are generally applicable when they protect trade secrets or customer contact and are reasonable in terms of duration and geographic scope. If the non-compliance with the non-agreement is not respected, an employer may claim damages, real damages, loss of earnings or punitive damages. However, well-informed employers encourage potential workers to remain legally binding in order to verify the non-competition agreement before signing.
A well-written no-competition agreement will even contain a paragraph indicating that the employer encourages the worker to make efforts to obtain such advice and that the employer has given the employee sufficient time to consult with counsel on the terms of the non-competition agreement. Encouraging the worker to seek such advice provides the employer with some protection against the worker`s subsequent claims that he has not given him sufficient time to verify and understand the terms of the non-competition agreement. “I think you see that happened in California, where they started not recognizing non-competitive agreements, and the people of Silicon Valley started or helped create these massive technology companies,” Fitzwater said. “They took their know-how and, by developing their profession, they recruited many new employees.” In Baker v. Bristol Care, Inc., the Missouri Supreme Court held that the continuation of the authorization activity and the “benefits” of that employment do not constitute a recital for the creation of a binding arbitration agreement. Mr. Durrell filed a complaint with the U.S. District Court for the Eastern District of Missouri and asked the court to rule that his non-competition clause was invalid. “If Missouri could have a much stricter view of non-competition obligations, it would allow people to use their talents and start new businesses or start their own businesses based on the things they know best,” Hwang told the Missouri Times. “This would have a net effect on increasing entrepreneurial activity, creating more innovation, creating more jobs and increasing productivity in the short term, and in the long run, we could see more economic dynamism in the long run.” The law on competition prohibitions is constantly evolving, more in some states than in others. A new status or central decision of the State Court can have a huge impact on existing non-competition agreements. Sometimes the new statutes only apply to agreements executed after the effective date of these statutes, but sometimes the statutes can affect both existing and new agreements.
In this regard, the Court found that the non-request provisions of the client were excessive and unenforceable. As it says, they applied to all of Whelan Security`s existing customers across the country, which former executives never