The law in Missouri regarding employer-employee restrictive covenants (ie., non-compete agreements, non-solicitation agreements and confidentiality agreements) is well developed. Those agreements are generally enforceable if they protect an employer’s legitimate interests against unfair competition. The law in Missouri regarding “exclusive dealings” agreements between businesses, however, is not as clearly defined. An “exclusive dealings” agreement is…
Legal Articles
Employment Contracts, Litigation
Missouri law tends to favor employers in employer-employee relationships. Generally, employees are usually hired on an “at-will” basis in Missouri. This means that an employer can hire or fire an employee for most any reason, provided that there is no unlawful discrimination or other illegality that exists in connection with the employment decision. Thus, an…
Employer-Employee Fiduciary Duties, Non-Compete, Non-Solicitation
A fiduciary relationship exists or is established when one reposes trust and confidence in another in the handling of certain business affairs. Every employee owes his or her employer a duty of loyalty. Nat’l Rejectors, Inc. v. Trieman, 409 S.W.2d 1, 41 (Mo. 1966). This makes sense because the employer is paying the employee to carry…
Non-Solicitation Restrictions
Non-solicitation clauses are different than non-compete and confidentiality agreements. In short, non-solicitation agreements usually prohibit an agent/employee from contacting customers post employment/work. From experience, Courts are more willing to uphold the validity of non-solicitation clauses, but — like with non-compete and confidentiality provisions — they will only be honored if they are necessary to protect…
Blue Pencil, Contracts, Restrictive Covenants, Non-Compete
A non-solicitation agreement generally means that an employee cannot, after the term of his/her employment, induce his/her former employer’s co-workers to leave, or solicit the former employer’s customers/clients. A non-compete agreement usually means that the ex-employee cannot go work for a competitor, directly or indirectly. A confidentiality agreement refers to an obligation of the…
Declaratory Judgments: Determining Contracts, Real Estate, Written Documents
Generally a court’s jurisdiction is limited to an ongoing case and controversy. However, in Missouri, an individual may petition the court for a declaratory judgment to determine certain rights, status, or other legal standing. In order for a Missouri Court to even entertain a declaratory judgment, it must be presented with: (1) a justiciable controversy that…