It is not unusual for an employer to ask an employee to sign a non-compete agreement as a condition of working there. A non-compete agreement is a useful tool for employers because it allows them to hire employees without having to worry about their confidential business information being exposed. Regardless of whether you are writing a non-compete agreement in Mississippi or being asked to sign one, you need to know what is typically included and what is legally enforceable.
Is a Non-Compete Legally Enforceable in Mississippi?
Yes, a non-compete agreement in Mississippi is enforceable. An employer can use a non-compete agreement to protect their business information from being shared with their competitors. An employer can also use a non-compete agreement to prevent their employees from working for a competitor in a certain geographic area for a certain number of years.
There are numerous examples of information that can be protected by Mississippi non-compete agreements. For example, trade secrets and confidential business information are frequently included. Goodwill is frequently included in a non-compete agreement as well. An employer can use a non-compete to prevent this information from being shared by employees. In general, anything that is considered essential for a business to succeed in a competitive market can be covered by a non-compete agreement.
Reasonable Use and Exemptions
For Mississippi non-compete agreements to be legally enforceable, they need to be reasonable in terms of time and space. This means that they cannot create undue hardship for their employees, and they cannot act against the public interest. If a judge deems that a non-compete agreement is overly broad or creates unnecessary burdens, then it might be thrown out.
- Enforceable when terminated without cause? Yes, absent bad faith or arbitrary basis for termination
- Employee non-solicitation agreement permitted? Yes
- Customer non-solicitation agreements permitted? Yes
- Does continuing employment equal sufficient consideration? Yes
Non-Compete Agreement Mississippi Limitations
There are certain limitations that can be included in a Mississippi non-compete agreement. In general, most of these limitations have to do with the public interest and the burden the agreement places on the employee. If a non-compete agreement is deemed injurious to the public interest, then it might not be enforceable. In addition, if a non-compete agreement is overly harsh against an employee, then a judge might throw it out.
Limitations on time
In the event of a breach of a non-compete agreement in MS, you have up to 3 years to bring a lawsuit.
Non-compete agreement Mississippi geographical limitations
There are no specific laws related to geography when it comes to Mississippi non-compete agreements. On the other hand, keep in mind that non-compete agreements can not be overly harsh or restrictive on employees. If a judge decides that is the case, then the agreement itself could be thrown out.
Mississippi Non-Compete Agreement Sample
If you are writing a non-compete agreement in Mississippi, take a look at our Mississippi non-compete agreement template, which is available in Word and PDF: