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Missouri Court of Appeals Confirms Non-Compete Enforceable if Given After Employment Starts

The Missouri Court of Appeals has held that a non-compete agreement signed by an employee after employment starts is enforceable.  In Jumbosack Corporation v. Bob Buyck, Mo. Ct. App., 2013, the Missouri Court of Appeals for the Eastern District of Missouri held that a non-compete signed after employment begun could be enforceable.  The case can be found here.

The employee in this case argued that continued employment was insufficient consideration for enforcement arguing that the employer had to prove: “promotion within the company, added responsibility and increase in compensation.”   The Court, however, disagreed:  In the instant case, Employee received in consideration for his covenant not to compete, access to Employer’s  new and existing customers, as well as continued at-will employment, salary, and commissions.”  That, to the Court, was sufficient.

While this is a good case for employers on the issue of continued employment being sufficient consideration for a non-compete, you can assume that there will be continued attacks by former employees trying to get out from under non-compete agreements.