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

Non-compete agreements in Tennessee

In Tennessee, non-compete agreements are generally enforceable if they are reasonable in scope and duration and serve to protect a legitimate business interest of the employer [2.1]. However, there are certain requirements that must be met for a non-compete agreement to be enforceable.

Requirements for enforceable non-compete agreements

  1. Consideration: The employee must receive some form of consideration in exchange for signing the non-compete agreement. This can be in the form of a job offer, a promotion, or some other benefit [2.1].
  2. Reasonableness: The non-compete agreement must be reasonable in scope and duration. The scope of the agreement should be limited to the specific type of work the employee performs for the employer, and the duration should be no longer than necessary to protect the employer’s legitimate business interests [2.1].
  3. Legitimate business interest: The non-compete agreement must serve to protect a legitimate business interest of the employer, such as trade secrets, confidential information, or customer relationships [2.1].
  4. Notice: The employer must provide the employee with reasonable notice of the non-compete agreement before or at the time of employment [2.1].

Prohibited provisions

There are certain provisions that are prohibited in non-compete agreements in Tennessee. For example, a non-compete agreement cannot prohibit an employee from working for a competitor after leaving the employer, unless the employee has access to trade secrets or other confidential information [2.1].

Other relevant documents

There are other documents that may be relevant to employment law in Tennessee, such as TNCO 12-4-903, which prohibits certain provisions in bid specifications, project agreements, and other documents related to state-funded contracts [2.1]. Additionally, TNCO 8-44-201 requires that labor negotiations between public employee unions or associations and representatives of a state or local governmental entity be open to the public [5.1].

Conclusion

In summary, non-compete agreements are generally enforceable in Tennessee if they meet certain requirements, such as consideration, reasonableness, and protection of a legitimate business interest. However, there are certain provisions that are prohibited, and employers who violate the requirements may be liable for damages.

Source(s):
Jurisdiction

Tennessee