Under what condition can employers enforce non-competition agreements with former employees?

Non-competition agreements are designed to protect legitimate business interests, such as trade secrets, client relationships, and other competitive advantages. For these agreements to be enforceable, they must be supported by a valid business purpose. This means the agreement should be aimed at preventing unfair competition and safeguarding the employer's investment in training, proprietary information, or client relationships.

A valid business purpose ensures that the terms of the non-competition agreement are reasonable in scope, geography, and duration, allowing the employer to protect its interests without unduly restricting the employee's ability to work in their chosen profession or trade. Courts often assess whether the restrictions are necessary to protect the employer's legitimate interests and serve a purpose that justifies the limitations placed on the employee.

For example, if an employee leaves a company and takes sensitive information to a competitor, a non-competition agreement could be upheld if it is proven that the former employer has a rightful interest in preventing this conduct. Therefore, the condition under which employers can enforce these agreements must align with ensuring a valid business purpose rather than being arbitrary or excessively restrictive.