Azure Brio Associates

Non-Compete Agreements

Employee turnover is a common occurrence in all businesses, especially in states where employers and employees are legally allowed to terminate their relationship  “at-will” . However, the knowledge and skills gained by employees should not leave with them when they depart. Noncompete Agreements are essential in safeguarding a company’s interests without violating an employee’s right to work wherever they want.

Azure Brio Associates is an experienced law firm that has the knowledge and expertise necessary to draft these important legal documents. We understand how to create Noncompete Agreements that comply with any states’ regulations and protect your company’s interests.


Understanding the Basics of Noncompete Agreements

A covenant not to compete, also known as a “noncompete agreement” or “non-compete clause,” is a legally binding agreement where one party agrees not to engage in activities that would increase competition for the other party for a specified period. This usually includes refraining from disclosing confidential information or trade secrets acquired while working for the employer or entering employment with a direct competitor.

Non-compete clauses are commonly found in employment contracts or sale of business contracts. In an employment contract, a non-compete clause typically limits an employee’s ability to use their current employer’s resources to benefit a future employer. For example, a consultant may be prevented from taking their current clients to a new consulting firm or joining a competing firm for a specified period after leaving their current employer.

In a sale of business contract, a noncompete agreement prevents the seller from creating a competing business for a specific period after selling their business. This helps protect the buyer’s investment and ensures that the seller does not use their previous business’s resources and knowledge to compete with the buyer.

Laws regarding non-compete agreements vary by state.

In most states, noncompete clauses are permitted as long as the restrictions are reasonable. In Wisconsin, reasonable covenants not to compete are allowed based on the principle of freedom of contract and exchange of consideration. However, what constitutes a “reasonable” restriction is not clearly defined. Some courts have found that non-compete clauses that prevent parties from working in similar, but not identical, industries are too broad to be considered reasonable. In Karpinski v. Ingrasci, the court determined that a dentist could use a non-compete agreement to temporarily prevent a former employee from practicing dentistry, but not oral surgery. Courts generally do not uphold non-compete agreements that completely prohibit former employees from finding new employment, as these clauses are viewed as punitive measures to discourage employees from quitting.

A small number of states almost completely prohibit the use of non-compete agreements. For example, California law prohibits almost all covenants not to compete. In the case of Edwards v. Arthur Anderson, the California Supreme Court held that the law should be strictly interpreted and not only render “unreasonable” non-compete clauses void, but all non-compete clauses except for those specifically permitted in the legal code.

The Benefits of Hiring an Azure Brio Associates Business Lawyer to Draft Your Noncompete Agreement

Crafting a valid Noncompete Agreement is a complex task that requires a nuanced and precise understanding of legal language. Even minor ambiguities or errors in the provisions can result in the agreement being unenforceable, leaving your business exposed to risks.

To avoid such pitfalls, it’s wise to entrust this crucial task to an experienced law firm run by business owners, for business owners. Azure Brio Associates’ business lawyers have a proven track record of protecting their clients with comprehensive and effective Noncompete Agreements. Our team will work closely with you to understand your business needs and unique circumstances and determine the best strategies to safeguard your interests.

If you’re interested in learning more about our business solutions or want to schedule a consultation, Call us at + 1 (443) 686 8365, + 57 (315) 359-6683, email

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