Non Compete Agreement Hawaii

The stated purpose of the law “is to stimulate the Hawaiian economy by prohibiting competition bans and restrictive agreements that prohibit competition after employment of employees of technology companies.” (d) Except for the reasons referred to in subsection (c) (4), it is prohibited to include in an employment contract a non-competition clause or a blocking clause concerning an employee of a technology company.  The clause is void and has no force or effect. Non-compete agreements, also known as non-compete or restrictive agreements, are employment contracts used by employers to limit a worker`s ability to compete with the employer through customer theft or trade secrets. Different rules may apply to situations in which a business is sold in whole or in part and a restrictive agreement is concluded between the buyer and the seller. 4. an agreement or arrangement entered into by a worker or representative who does not use the trade secrets of the employer or principal during or after the Agency`s term of office or after, within a period reasonably necessary for the protection of the employer or principal, without imposing unreasonable harshness on the employee or agent. The “non-insolvent clause” is defined as “prohibiting a worker from recruiting employees of the employer after leaving the employment relationship with the employer”. Curiously, there seems to be an open question about whether customer prohibition rules are covered by the new law, while proponents of the law may argue that customer non-solicits are covered by the word “non-competition.” Most non-compete cases include subtle interpretations of state and federal laws. The definition of what constitutes a trade secret or a competing business can often be a contentious issue. Whether the employee has actually violated a NCC is often the subject of serious debate. This is especially true in Hawaii since June 2015, when Act 158 went into effect.

A restrictive agreement not to compete with a former employer finds a particular harshness for employees of technology companies, as these highly specialized professionals are trained for certain tasks in the sector.

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