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6 December, 09:54

Discuss the legal implications for employers and employees for requiring employees to sign noncompete agreements. What factors did the court consider in making its decision? Compare and contrast Ohio and Nebraska's positions on noncompete clauses.

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  1. 6 December, 10:32
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    A non-compete agreement is a contract between an employer and employee that forbid an employee from participating in a business that clashes with his or her current employer's business

    Explanation:

    A non-compete agreement is a contract between an employer and employee that forbid an employee from participating in a business that clashes with his or her current employer's business. Courts do not approve of non-compete agreements and when there are disputes over non-compete agreements, the courts consider certain factors to be able to decide if the agreement is reasonable.

    Some factors that courts look when determining whether a non-compete agreement is reasonable include:

    • whether the employer have legitimate interest it is protecting with the non-compete agreement

    • the geographic scope of the restriction whether it hinders one from making a living.

    • length of the non-compete agreement.

    • whether the employer provides the employee with additional benefits or compensation in return for getting the agreement signed.

    In Ohio, non-compete agreements are lawful. The state acknowledges the use of non-compete agreements.

    In Nebraska, non-compete agreements are binding if the terms are reasonable and vital to protect some business interests such as trade secrets and confidential information.
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