Hiring an Employee with a Non-Compete Agreement: What You Need to Know

When considering hiring a new employee, one factor that employers must take into account is whether or not the candidate has a non-compete agreement in place with their current or previous employer. A non-compete agreement is a legal document that restricts an employee from competing against their former employer for a certain period of time after leaving their job. These agreements are commonly used in industries where competition is high and where employees have access to sensitive information.

While non-compete agreements can be beneficial to employers, they can also be a source of concern for companies looking to hire new talent. Here are a few things to keep in mind when hiring an employee with a non-compete agreement:

1. Understand the terms of the non-compete agreement

Before making any hiring decisions, it`s important to thoroughly review the terms of the non-compete agreement that the candidate is bound by. Some non-compete agreements may be more restrictive than others, and it`s important to understand what limitations the candidate will be under if they were to join your company.

2. Consider the potential risks

Hiring an employee with a non-compete agreement can come with some potential risks. If the candidate violates the terms of their agreement, it could result in legal action being taken against your company. Additionally, if the candidate is unable to fulfill their job responsibilities due to the restrictions of their non-compete agreement, it could impact your company`s productivity and overall success.

3. Seek legal guidance

If you`re unsure about the legality of hiring an employee with a non-compete agreement, it`s always best to seek legal guidance. An experienced attorney can help you understand the potential risks and advise you on the best course of action.

4. Negotiate with the candidate`s former employer

In some cases, it may be possible to negotiate with the candidate`s former employer to have the non-compete agreement revised or lifted. This is especially true if the restrictions are particularly restrictive or if the candidate has unique skills or experience that are hard to find elsewhere.

5. Have a plan in place

If you do decide to hire an employee with a non-compete agreement, it`s important to have a plan in place for how you`ll handle any potential legal issues or conflicts that may arise. This could include keeping detailed documentation of the candidate`s work, ensuring that they`re not using any proprietary information from their former employer, and having a comprehensive understanding of the terms of the non-compete agreement.

Overall, hiring an employee with a non-compete agreement can be a complex process, but with the right approach and careful consideration, it`s possible to navigate these agreements successfully. By understanding the terms of the non-compete agreement, assessing the potential risks, seeking legal guidance, negotiating with the candidate`s former employer, and having a plan in place, you can make informed decisions about whether or not to hire a candidate with a non-compete agreement.