Nebraska Law on Non-Compete Agreements: An Overview

Non-compete agreements are becoming more popular in the workforce. They are often used as legal tools to protect the employers’ trade secrets, customer lists, and other confidential business information. As a professional, I have researched and collected information on Nebraska law regarding non-compete agreements.

What is a Non-Compete Agreement?

A non-compete agreement is a legal contract between an employer and an employee that limits the employee’s ability to work for a competitor or start a competing business. The agreement specifies certain limitations, such as the length of time the employee must refrain from competing and the geographic area where the employee cannot work.

Nebraska Law on Non-Compete Agreements

Nebraska law does not have a specific statute governing non-compete agreements. Instead, these agreements are generally enforced by adherence to common law principles. There are some key aspects of Nebraska law that employers and employees should be aware of when it comes to non-compete agreements.

First, non-compete agreements must be reasonable in scope. That means that the restrictions placed on employees must be necessary to protect the employer’s legitimate business interests. Generally, a non-compete agreement will be deemed reasonable if it is limited in time, geographic scope, and the type of activity it prohibits.

Second, Nebraska courts will not enforce non-compete agreements that are overly restrictive. For example, if a non-compete agreement prevents an employee from working in their chosen profession or industry for an extended period, it may be deemed unenforceable.

Third, Nebraska courts will not enforce non-compete agreements that are against public policy. For example, a non-compete agreement that prevents an employee from seeking employment may be deemed unreasonable and contrary to public policy.

Finally, Nebraska courts will interpret non-compete agreements narrowly. That means that any ambiguities in the language of the agreement will be interpreted in favor of the employee.

Conclusion

Nebraska law does not have a specific statute governing non-compete agreements. Instead, these agreements are generally enforced by common law principles. Employers and employees should be aware of the key aspects of Nebraska law when it comes to non-compete agreements, such as the need for a reasonable scope and the narrow interpretation of these agreements. It is important to consult with an attorney before entering into a non-compete agreement to ensure that it is reasonable, enforceable, and does not violate any public policy.