Updated April 19, 2024
A Vermont non-solicitation agreement is a contract between an employer and an employee that restricts the employee’s ability to solicit the company’s clients, personnel, and other business relationships upon their termination of employment. The contract is intended to protect the employer’s business interests.
Is It Legally Enforceable in Vermont?
Yes. Non-solicitation agreements are legally binding in Vermont, although there is no state statute that addresses them directly.
Enforceable agreements must generally pass the test of reasonableness, which means that they are not contrary to public policy, are necessary for the protection of the employer, and do not unnecessarily restrict the employee’s rights.[1][2]
Table of Contents |
What Can a Non-Solicitation Agreement Prohibit?
As long as it is within reason, a non-solicitation agreement in Vermont can restrict a former employee from soliciting the employer’s:
- Former or current clients
- Former or current employees
- Independent contractors
- Other business associates
What Should a Non-Solicitation Agreement Include?
While not required by law, it is recommended that a non-solicitation agreement or clause include limitations on the following:
1. Time Limit
The agreement should define its start and end date wherein the terms would be enforced. The set duration should balance the rights of both the employer and the employee.
2. Geographical Area
It should also specify the exact location or area where the individual would be bound to the terms. To be considered reasonable, it should generally be limited to the region where the employer is based.
3. Prohibited Activities
This section defines exactly what the individual is prohibited from doing as part of the agreement. The restrictions must not be overly burdensome to the employee.
Related Forms
Download: PDF, MS Word, OpenDocument
Vermont Non-Disclosure Agreement
Download: PDF, MS Word, OpenDocument