An Alaska non-compete agreement is a contract between an employer and employees designed to restrict an employee’s ability to take sensitive information with them if they go to a competing company.
Alaska is generally skeptical of non-compete agreements because they could limit a worker’s ability to change jobs. However, non-compete agreements are allowed in specific situations.
Check out below for everything you need to know about a non-compete agreement in Alaska.
Is a Non-Compete Legally Enforceable in Alaska?
The technical answer is that yes, non-compete agreements are legally enforceable in Alaska. However, that does not mean that all non-compete agreements are enforceable.
Alaska courts have generally favored non-compete agreements that are narrow in scope and short in duration. A non-compete is more likely to succeed in Alaska if it is very specific about what is and is not allowed, and if the duration of the non-compete is relatively short. Alaskan courts tend to err on the side of the worker in legal disputes.
The following can be protected by non-compete agreements in Alaska:
- Trade secrets
- Intellectual property
- Customer lists
- Goodwill with customers
- Knowledge of his or her business practices
- Profit margins
- Other confidential information that is confidential, proprietary, and increases in value from not being known by a competitor
- Other valuable employee data that the employer has provided to an employee that an employee would reasonably seek to protect or safeguard from a competitor in the interest of fairness.
Reasonable Use and Exceptions
Below are the reasonable uses for non-compete agreements in Alaska:
- Limitations in time and space
- Whether employee was sole contact with customer
- Employee’s possession of trade secrets or confidential information
- Whether restriction eliminates unfair or ordinary competition
- Whether the covenant stifles an employee’s inherent skill and experience
- Proportionality of benefit to employer and detriment to the employee
- Whether an employee’s sole means of support is barred
- Whether an employee’s talent was developed during employment
- Whether forbidden employment is incidental to the main employment.
There are no exceptions in Alaska for non-compete agreements.
Be aware of the following FAQs when using a non-compete agreement in Alaska:
- Enforceable when terminated without cause? – Not decided
- Employee non-solicitation agreement permitted? – Not decided
- Customer non-solicitation agreements permitted? – Not decided
- Does continuing employment equal sufficient consideration? – Not decided
Non-Compete Alaska Limitations
Alaska doesn’t have defined limitations on non-compete agreements, but courts have ruled against certain types.
Limitations on time
There is no set limitation on time in Alaska. However, the state has ruled that a two-year agreement is reasonable and that a five-year agreement is not. Generally, shorter is better.
Non-compete agreement Alaska geographical limitations
Alaska does not have set geographical limitations on non-compete agreements, but state courts have ruled against statewide agreements. Again, generally the smaller the geographical limits the better.
Alaska Non-Compete Agreement Sample
Download an Alaska Non-Compete Agreement template here: