Some of you may have signed a non-compete agreement as a condition of employment.A non-compete agreement usually has three promises an employee must make that are legally binding for a period AFTER the employee leaves the job.First, there is a promise to keep the company's secrets confidential.Second, there is a promise not to compete with the company.Third, there is a promise not to solicit or "poach" thecompany's employees or customers.The company also sets a period (usually less than 3 years) that the promises must be kept.The case in your reading this week, Labriola v. Pollard Group, discusses what "consideration" is required to make a non-compete agreement enforceable.

Courts have different approaches to non-compete agreements.Some courts are pro-company and will enforce very restrictive non-compete agreements.Other courts are pro-employee and will strike down parts or all of a non-compete agreement that is too restrictive on the employee's ability to find work after they leave the company.The general analysis is balancing a company's legitimate business interests with the employee's ability to earn a livelihood.A company that is unable to show a legitimate business interest (like protecting investment in research or maintaining confidential customer list that is key to its business) will be seen as being unfairly anti-competition.Courts in California are generally seen as pro-employee because of the robust tech economy where movement of employees between jobs is seen as beneficial.

Other branches of the government can weigh in on this topic too.For example, the Washington stateAttorney General's office filed a lawsuit(Links to an external site.)

against a coffee chain for having and enforcing non-compete agreements against its barista.The Washington Legislature recently enacted protections such as making non-compete agreements against employees who make less than $100,000 void and unenforceable.It also codifies the rule in Labriola v. Pollard Group which required independent consideration to support a non-compete agreement entered into after the employment relationship began.This law(Links to an external site.)

, codified at RCW 49.62, became effective on Jan. 1, 2020.

For this week's discussion, please post your thoughts/reactions/questions to this topic.