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

Here is the response to your query:

Non-compete agreements in Mississippi

Mississippi allows employers to require employees to sign non-compete agreements, but there are certain requirements that must be met for such agreements to be enforceable.

According to Mississippi Code Section 75-24-1, a non-compete agreement must be “reasonable as to time, geographical area, and scope of activity to be restrained.” This means that the agreement cannot be overly broad or restrictive, and must be limited to protecting the employer’s legitimate business interests.

Additionally, the agreement must be supported by consideration, which means that the employee must receive something of value in exchange for signing the agreement. This could be a job offer, a promotion, or some other benefit.

It is important to note that Mississippi courts will closely scrutinize non-compete agreements to ensure that they are reasonable and not overly restrictive. If an agreement is found to be overly broad or unreasonable, it may be deemed unenforceable.

Incentive Payments

Mississippi Code Section 57-62-13 outlines the requirements for receiving incentive payments for qualified businesses or industries. The business or industry must meet the salary and job requirements of the chapter for four consecutive calendar quarters prior to payment of the first incentive payment. If the business or industry does not maintain the salary or job requirements at any other time during the ten-year period after the date the first payment was made, the incentive payments shall not be made and shall not be resumed until such time as the actual verified number of new direct jobs created and maintained by the business or industry equals or exceeds the requirements of this chapter for one calendar quarter.

Conclusion

In summary, employers in Mississippi can require employees to sign non-compete agreements, but the agreements must be reasonable in terms of time, geographical area, and scope of activity to be restrained. Additionally, the agreement must be supported by consideration. It is important to ensure that any non-compete agreement is carefully drafted to comply with Mississippi law. Mississippi Code Section 57-62-13 outlines the requirements for receiving incentive payments for qualified businesses or industries.

Jurisdiction

Mississippi

• Labor