Law Commons^™

The Business Fallout From The Rapid Obsolescence And Plannedobsolescence Of High-Tech Products: Downsizing Of Noncompetition Agreements, Ann C. Hodges, Porcher L. Taylor Iii

Law Faculty Publications

The recent rapid pace of technological change has made human capital more important, yet it has rendered the employee’s knowledge base obsolete more quickly. Employers use covenants not to compete, restricting employees from switching to work for competitors, in order to retain knowledgeable personnel. Currently, the lack of predictability in interpreting noncompete agreements allows employers to draft overly-lengthy noncompetes, encourages enforcement litigation, and curtails employees from changing jobs because of the fear of litigation. Employees should not be prevented from working for competitors for longer than is necessary to protect the employer’s legitimate interest. Use of obsolescence as a guide …