Non-Compete Agreements Enforceable in Nebraska: What You Need to Know

A non-compete agreement is a legal document used by an employer to protect their business from competition by restricting an employee`s ability to work for a competitor or start their own competing business. In Nebraska, non-compete agreements are generally enforceable, but there are certain factors that must be considered to determine their validity.

The first factor to consider is the reasonableness of the restriction. Nebraska law states that a non-compete agreement must be reasonable in terms of the duration of the restriction and the geographical scope. The restriction should only be as long and as large as necessary to protect the employer`s legitimate business interests.

The second factor to consider is the type of employee covered by the agreement. Non-compete agreements for low-level employees, such as clerks or receptionists, are generally not enforceable. However, agreements for high-level employees, such as executives or salespeople, are more likely to be enforced because they have access to confidential information and trade secrets.

The third factor to consider is whether the employee received something of value in exchange for signing the agreement. In Nebraska, the agreement must be supported by consideration, which is something of value exchanged between the parties. Typically, the employee will receive some form of compensation or promise of continued employment in exchange for signing the agreement.

Finally, the employer must have a legitimate business interest to protect. The non-compete agreement must be designed to protect the employer`s confidential information, trade secrets, customer goodwill, or other similar interests. The agreement cannot be used solely to prevent competition or restrict an employee`s ability to work.

If all of these factors are met, a non-compete agreement in Nebraska is likely to be enforceable. However, if the agreement is found to be overly restrictive or unfair to the employee, it may not be upheld in court.

In conclusion, if you are an employer in Nebraska seeking to protect your business from competition, a non-compete agreement may be a useful tool. However, it is important to ensure that the agreement is reasonable, supported by consideration, and designed to protect legitimate business interests. As an employee, it is important to carefully review any non-compete agreement before signing and to seek legal advice if necessary.