Appendix 3. Employee Agreement

Introductory Note

This is a form of Employee Agreement. You should review Chapter 3 before using it, and you may wish to seek advice of your own legal counsel because employment law has significant state-by-state variations.

This form includes both non-competition provisions and restraints on solicitation of other employees or customers.

As noted in Chapter 3, some states require, as a condition of enforcing such restraints, that the employer make a payment to the employee in cash (or something else of value) as “consideration” for the restraint, particularly if the agreement is signed after employment begins.

If you are a California employer, you should know that California prohibits most non-competition restraints. ...

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