Conflicts of interest and trade secrets
contractual
limitations - if these are an issue, have affected employees sign a
clear written agreement promising not to do certain things and
agreeing to pay damages in the event that the employees breach the agreement
policy guidelines - on top of a written agreement signed by each affected employee, the policy handbook should mention what the employer expects of employees in this regard
Non-competition agreements
most state laws provide that a covenant not to compete is enforceable only if it:
is ancillary
to or part of an otherwise enforceable agreement
contains reasonable limitations as to time, geographical area, and scope of activity
most state courts have ruled that the public policy is to promote competition, not limit it, and that before an agreement limiting competition will be enforced, the employer must show how non-enforcement would harm it and that enforcement would not place an unreasonable burden on a person's right to practice a profession or trade or otherwise make a living. The more specialized the knowledge for the position is, the easier it is to show a need to limit competition in some way. The more general the knowledge is, the more difficult it will be to show that the business needs protection from competition (this is sometimes called the "common calling doctrine").
