Non-compete Law
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Tennessee is one of approximately 28 states that allow non-competes to be enforced against discharged employees. (citation?). Tennessee, unlike some other states, also does not prevent non-competes from being enforced against lower-wage workers and independent contractors. So there is no bright-line rule that invalidates non-competes even in the midst of a pandemic.
How do Tennessee courts determine whether a non-compete agreement is reasonable?
Whether the non-compete agreement was supported by sufficient consideration
Whether the employer has a legitimate business interest that needs to be protected
Whether the non-compete agreement will cause economic hardship to the employee if it is enforced
Whether the non-compete agreement violates public policy
Whether the non-compete agreement is reasonable in terms of its time and geographic limitations.
Assuming the non-compete agreement satisfies the above factors, it will generally be enforced.
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When considering whether this factor has been satisfied, courts will examine what value the employee received in return for signing the non-compete agreement.
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