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Implications of Certain Employment Laws

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A number of employers will utilize restrictive covenants such as having employees sign confidentiality, non-competition and non-solicitation agreements upon hire. When the employee leaves, the employer will enforce the agreement against the employee. Let us assume an employer had an employee sign a non-competition agreement that restricted the employee from working for a competing employer within a 30 mile radius of where the employee last worked for the employer and for a duration of two years. If this restrictive covenant essentially means the employee would need to relocate or commute to work over one hour one-way every day to get to an employer that is far enough away not to violate the covenant, would you deem it to be too restrictive? Why, or why not

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When the court analyzes these types of agreements, they use a reasonableness standard, which is the same standard we would want to apply in this case. We have to ask additional questions to determine if the agreement or covenant is reasonable. We need to consider the type of industry. How competitive is this industry? We would also need to consider the population of the area in relation to the mile radius. Let's look at a few examples. If this is a business consulting firm in a ...

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This solution thoroughly discusses non-compete agreements and restrictive covenants.

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Ethics implications

Manychip has determined that there are three possible general locations for building a key production facility:

1) a rural location in the southwest United States that has offered major tax incentives and promised to make Manychip exempt from certain local environmental restrictions
2) an overseas location in Southeast Asia that will provide low cost labor, no tariffs consisting of 12 - 25 year old employees that have been well-trained
3) a major metropolitan U.S. city that is the most optimal from a workflow standpoint, has minimal tax incentives and more stringent local restrictions with the potential for an excellent employee pool (numbers and quality)

Using course materials and other research:

1. Identify the ethics implications of each alternative: postulate what situations might prove problematic and describe how the company should handle them.
2. Identify the methods the company should use in making the final decision on this facility location.
3. Comment on other postings by critiquing the other proposals and suggesting aspects of your classmates' plans that may have been overlooked.


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