Due to the competitive nature in many industries, many employers have employees sign non-compete agreements.  These agreements prohibit the employee from working for competitors or opening his or her own business in the same industry.  The requirements of these types of agreements are based on state law, but generally there must be reasonable limitations in relation to the scope, geography and time constraints.  Additionally, the employer must have something to protect that justifies the non-compete agreement.

When the employer and former employee are at odds over a non-compete agreement, they may use mediation as a way to resolve these differences.  Mediation can help the parties avoid costly litigation or the possibility that the outcome will not be as they intended.  Through mediation, the parties may consider possible solutions to their dispute, such as:

Eliminating the Agreement

The parties may decide that the agreement is no longer necessary.  The industry may have changed, or the agreement may no longer serve the intended purposes of the parties.  They may mutually agree not to honor the agreement.

Altering the Agreement

The employer may agree that the original agreement is broader than necessary.  As such, the parties may agree to make adjustments.  For example, the employer may alter the agreement to be valid for two years instead of three.  It may condense the geographic region that is covered so the former employee has the option to pursue new opportunities.

Reciprocal Referrals

The parties may agree to provide referrals to each other for jobs that they are not able to complete or that may not be appropriate for them.  This can allow them to have an ongoing, positive relationship rather than to be adversaries to each other.