What is an reasonable time for a confidentiality, non-disclosure and non-compete agreement?

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What is an reasonable time for a confidentiality, non-disclosure and non-compete agreement?

My company wants me to sign one for a $500 payment (also calling it a Christmas bonus). It’s a vending company and they have that I shall not engage in business in manner similar too company’s business for 3 years from date of termination within a geographical of 150 miles of any present or future company sites.Is this a bit much?

Asked on December 23, 2014 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

While you can agree to anything you choose, to answer your question--yes, this is actually considerably  longer than would be typical, *unless* you were a senior executive. For non-executives, a typical non-competition agreement might be more like 6 months; perhaps as long as a year, but certainly less than 3 years.

Also, the geographic scope seems excessive, unless in your industry, vending companies regularly service at least 150 mile-radii. The point is, the scope of the non-compete should not be more than is necessary to protect the company, in its normal operations, from competition.


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