A Vermont Non-Compete Agreement is used by employers to limit the information that current and former employees can share with others. In addition, this same non-compete agreement can limit where current and former employees can work during and after their time with the company.
Overall, a non-compete agreement in Vermont can be used to protect confidential information and business secrets from being exposed in a way that would otherwise damage the company.
Reasonable Uses and Objections
- Enforceable when terminated without cause? – Not decided.
- Employee non-solicitation agreement permitted? – Not decided.
- Customer non-solicitation agreements permitted? – Yes.
- Does continuing employment equal sufficient consideration? – Yes.
Legally Enforceable in Vermont?
Yes, a non-compete agreement can be legally enforced in Vermont. On the other hand, all rules and regulations related to a non-compete agreement in Vermont must be met for that agreement to be enforced. If a judge decides that a non-compete agreement in Vermont has violated any rules or regulations, the agreement could be thrown out.
Reasonable Use and Exemptions
For a non-compete agreement in Vermont to be enforced, it has to be necessary to protect legitimate business interests. It cannot be unnecessarily restrictive toward the employee, and the agreement has to be limited in time, space, and industry. Furthermore, if a non-compete agreement is deemed to be contrary to public policy in Vermont, it could be thrown out.
In addition, beauticians and cosmetologists cannot be forced to sign a non-compete agreement.
Time Limitations
A non-compete agreement in Vermont should not last longer than is necessary to protect the company’s interests. If there is a breach of a non-compete contract, the offended party has six years within which to bring a lawsuit.
Geographical Limitations
No laws in Vermont specify geographic limitations that must be included; however, remember that a non-compete agreement cannot be unduly harsh or restrictive.
The employer must justify why certain geographic limitations have been put in place. If those limitations cannot be justified, a judge could throw out the agreement.
Sample
If you are drafting a non-compete agreement in Vermont, take a look at our Vermont non-compete agreement template, which you can download in both PDF and Word formats:
