Non-Compete Agreements

So you’ve conducted thorough screenings, finalized in-depth interviews and have narrowed your candidate selection down to your ultimate choice. There’s just one last hang up - the individual you want to join your organization signed a non-compete agreement with his current employer.

Before shrugging off any legal implications, it may be well worth your while to understand the outcomes of similar cases. “In Kallok v. Medtronic, Inc., the Supreme Court affirmed the trial court’s decision barring an employee from working for a competitor and holding the competitor who tried to hire the employee liable for the former employer’s attorneys’ fees.”

The law firm of Fredrikson & Byron, P.A. offers some useful advice if you find yourself in the midst of a non-compete agreement with a job candidate:

• Require candidates to provide copies of all employment, non-competition, confidentiality, and nondisclosure agreements from their current employer.

• If the applicant denies existence of any agreements, confirm in writing.

• If such an agreement does exist, obtain a legal record of the agreement.

• Provide your attorney with all of the facts, including what the applicant's current job involves and what the new position would involve.

• If you still decide to hire the candidate, enlist a procedure to make sure he/she abides by the terms of their agreement.

• Do not hire the applicant if you are not prepared to deal with the risk associated with your actions.

Visit Fredrikson & Byron’s website for more advice.

Posted by Shelly Paul, Career Management Coordinator, The H.S. Group