Legal Question in Employment Law in Nebraska

Non-competition clause

I recently became part owner (20%) of a business. There were previously 3 owners, then myself and another person bought out 2 of the original owners, leaving 1 original owner (60%) and the two new owners (20% each). When we did this, we signed a buyout contract with the 2 original owners being bought out, one of the clauses of this contract was a non-compete clause saying that I could not work in this same industry withing a 5 mile radius of this business. Since that time, my hours have been cut and my pay has been cut in half by the 60% owner. He said he will allow me to get out of the ownership contract, which would allow me to pursue other jobs. However, the original two owners say they will only let me out of the contract if I will sign another form still saying I will not work within a 5 mile radius. Are these non-compete clauses legal in Nebraska? I have read that depending on the state, they may or may not be binding. Do I have any recourse do get out of this clause?


Asked on 3/21/07, 12:36 am

1 Answer from Attorneys
David Anderson Anderson Business Law LLC

Re: Non-competition clause

Pursuant to Nebraska law, a noncompete agreement is valid if it is (1) "not injurious to the public," (2) "not greater than is reasonably necessary to protect the employer in some legitimate interest," and (3) "not unduly harsh and oppressive on the employee." Prof 1 Bus. Servs. Co. v. Rosno, 680 N.W.2d 176, 184 (Neb. 2004)

I would need to see the agreement to advise you in the full context of the purchase and enforcement of rights thereafter.

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Answered on 3/21/07, 7:16 am


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