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Yes. In Tennessee, non-compete agreements are enforceable if the contract is used to protect and legitimate business interest and is reasonable. Courts will determine whether a non-compete is reasonable based on the following factors:
When determining whether to enforce a non-compete agreement, courts will also consider the information that the employer is seeking to protect. There must be a legitimate business interest like trade secrets. Non-compete agreements cannot be used solely to prevent reasonable competition.
Courts in Tennessee have ruled that two years is a reasonable length of time for a non-compete agreement to last. Under a two-year non-compete agreement, the geographic boundary can extend nationwide as long as the employer’s business has a presence nationwide.
To get around a non-compete agreement in Tennessee, an employee will need to prove that the agreement is unreasonable. If the employee is facing undue hardship because of the agreement or the terms of the agreement are overly restrictive, they may be able to convince a court to terminate the contract.
A non-compete agreement in Tennessee will be void if an employee was wrongfully terminated. When an employee is fired in good faith, an employer can usually enforce a non-compete agreement. However, if the employee signs the non-compete agreement and is terminated shortly after, a court may find the contract void because it was not signed in good faith.
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Ferraro Law Firm was founded by Dean C. Ferraro. Dean earned his Bachelor's Degree from California State Polytechnic University, Pomona ("Cal Poly Pomona") in 1992 and his J.D. Degree from the University of Mississippi School of Law ("Ole Miss") in 1996. He is licensed to practice law in the State Courts of Colorado, Tennessee, and California. Dean is also admitted to practice before the United States District Courts of Colorado (District of Colorado), California (Central District), and Tennessee (Eastern District). Shortly after earning his law license and working for a private law firm, Dean joined the District Attorney's office, where he worked for five successful years as one of the leading prosecuting attorneys in the State of Tennessee. After seven years of practicing law in Tennessee, Dean moved back to his birth state and practiced law in California from 2003-2015. In 2015, Dean moved with his family to Colorado, practicing law in beautiful Castle Rock, where he is recognized as a highly-effective attorney, well-versed in many areas of law. Dean's career has entailed practicing multiple areas of law, including civil litigation with a large law firm, prosecuting criminal cases as an Assistant District Attorney, In-House Counsel for Safeco Insurance, and as the founding member of an online law group that helped thousands of people get affordable legal services. Pursuing his passion for helping others, Dean now utilizes his legal and entrepreneurial experience to help his clients in their personal and business lives. Dean is also a bestselling author of two legal thrillers, Murder in Santa Barbara and Murder in Vail. He currently is working on his next legal thriller, The Grove Conspiracy, set to be published in 2023.
