Non-Compete Agreement in Mississippi
State-specific overview · Employment Law
Mississippi enforces reasonable non-competes that protect legitimate business interests without imposing undue hardship on the employee.
How Mississippi treats Non-Compete Agreement
Mississippi courts uphold non-compete agreements when they are reasonable in duration, geographic area, and scope of prohibited activities, and when they protect legitimate business interests such as trade secrets or customer relationships. The state applies a reasonableness test similar to the general common-law standard. Courts examine whether the restriction is necessary to protect the employer and whether it unduly restricts the employee's ability to earn a livelihood. Non-competes ancillary to the sale of a business or a valid employment relationship are more likely to be enforced.
The general definition of Non-Compete Agreement
A contract clause restricting an employee from working for competitors or starting a competing business after leaving.
A non-compete agreement is a contract between an employer and employee that prevents the employee from working for a competitor or starting a competing business for a set period after leaving the job. These agreements are designed to protect the employer's trade secrets and customer relationships. However, courts scrutinize them carefully because they restrict a person's right to earn a living. A non-compete is generally enforceable only if it is reasonable in scope (limited to a specific geographic area and time period) and protects a legitimate business interest. Some states, like California, disfavor non-competes entirely.
Read the full Non-Compete Agreement entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Mississippi.