In Missouri — even without an employment contract, non-compete agreement, non-solicitation agreement or confidentiality agreement — an employee owes his/her employer a duty of loyalty. Western Blue Print Co., LLC v. Roberts, 367 S.W.3d 7, 15 (Mo. 2012). What this generally means is that an employee cannot work directly against his/her employer’s interests. At the same…
Legal Articles
Exclusive Dealings Contracts, Anti-trade, Monopolies
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…
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…
Non-Compete Agreements in Missori
The purpose of a non-compete agreement is to protect an employer from unfair competition. Missouri law, then, balances the interest in having robust commercial activity against the interest of employers being subjected to an uneven playing field by working against competitors who have insight into how the other works from a former employee. In balancing…
Covenant Not to Compete Agreement: Saint Louis, Missouri
Non-Compete agreements have always been around, but it seems that they have come to the forefront in recent years. The purpose of a non-compete agreement is to protect an employer from unfair competition. Missouri law, then, balances the interest in having robust commercial activity against the interest of employers being subjected to an uneven playing…