Employers will frequently use a Vermont non-compete agreement to limit the information that current and former employees can share with others. In addition, this same non-compete agreement can be used to 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.
Is a Non-Compete 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.
What’s Protected?
Multiple categories of information can be shielded by a Vermont non-compete agreement. This non-compete agreement could be used to protect current and former relationships with customers. It could prevent someone who signs the non-compete agreement from trying to poach those customers. A non-compete agreement can also be used to protect trade secrets, company financial information, and other forms of confidential information. Finally, any goodwill that the company has shown could also be protected via a non-compete agreement in Vermont.
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 itself has to be limited in terms of 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.
- 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
Non-Compete Agreement Vermont Limitations
There are a few limitations that should be considered when writing non-compete agreements in Vermont. Some of the most important limitations to keep in mind include:
Limitations on time
A non-compete agreement in Vermont should not last longer than is necessary to protect the interests of the company. If there is a breach of a non-compete agreement, the offended party has six years within which to bring a lawsuit.
Non-compete agreement Vermont geographical limitations
There are no laws in Vermont that clearly specify geographic limitations that have to be included; however, remember that a non-compete agreement cannot be unduly harsh or restrictive. The employer has to be able to justify why certain geographic limitations have been put in place. If those limitations cannot be justified, the agreement could be thrown out by a judge.
Vermont Non-Compete 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:
Non-Compete Agreement
