The scope of the agreement. (The courts have held that the scope of a competition agreement should not be too broad to be enforceable. In the case of a CPA business, the volume is normally indicated with respect to the list of customers of the company or all customers with whom an employee has been in contact for a specified period of time.) No customer request. Similarly, an employer may prevent a former employee from asking customers to remove them from the company. This situation occurs in the distribution and also in professional practices, in clients or patients. Already in Dyer`s case in 1414, the English common law decided not to enforce the prohibitions on non-competition, as they were by nature trade restrictions. [4] This prohibition remained unchanged until 1621, when a restriction limited to a given geographical site was established as an exception to the previously absolute rule. Nearly a hundred years later, the exception became the rule in Mitchel v Reynolds of 1711,[5] which provided the modern framework for analyzing the possibility of a non-competition clause. [6] This will be valuable if you create a business that could be considered a competition, but it is 10 states apart and does not pose competition problems for your current employer. Companies that do not have a non-compete agreement should consult a lawyer to develop an appropriate agreement for the company and relevant government laws. WHAT WAS YOUR COMPANY SUPPOSED TO DO? Each company should consider and mitigate the possibility that an employee who changes jobs or becomes an independent practitioner may try to use proprietary information or remove customers from the business.

Practices that have formal staff agreements should review them – with the help of a lawyer – and existing non-competition bans to determine whether the company has properly protected itself. Companies that do not have a non-compete agreement should consult a lawyer to reach an agreement. A non-compete agreement clarifies the ownership of certain types of business information and helps protect the most valuable assets that a CPA company owns – its customers.