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Can I require employees to sign non-compete agreements in Delaware? What are the requirements?

Based on Delaware law, non-compete agreements for non-physician employees are generally enforceable if they are reasonable in scope, duration, and geographic area [1.1]. However, employers should ensure that the agreement is supported by consideration, such as a job offer or a promotion, and protects a legitimate business interest, such as trade secrets or confidential information [1.1].

It is important to note that if the employees are covered by a collective bargaining agreement, any non-compete agreement must be negotiated with the union [2.1]. Additionally, any agreement to acquire and operate a privately owned mass transportation system must include fair and equitable protective arrangements for employees, including the preservation of existing rights, privileges, and benefits under collective bargaining agreements [4.1].

Employers must also comply with record-keeping requirements, including keeping records of employee names, addresses, occupations, rates of pay, and hours worked [3.2]. Finally, any provision in an employment agreement that requires an employee to assign or offer to assign any of their rights in an invention to their employer does not apply to inventions developed entirely on the employee’s own time without using the employer’s equipment, supplies, facility, or trade secret information, except for those inventions that relate to the employer’s business or actual or demonstrably anticipated research or development [4.2].

In summary, non-compete agreements for non-physician employees are generally enforceable in Delaware if they are reasonable in scope, duration, and geographic area and protect a legitimate business interest. However, employers must ensure compliance with collective bargaining agreements, record-keeping requirements, and protective arrangements for employees in certain situations.

Source(s):
Jurisdiction

Delaware