Tom and Mark approach Susan with a concern over whether it can restrict its salespeople from leaving to work for a competitor. Susan explains that a noncompete agreement would have to be drafted designating the duration and geographical restriction. The latter is usually limited to the area from which L&S draws its customers. Each salesperson would have to sign the noncompete agreement. The enforceability of this agreement hinges upon whether L&S could show harm to its business. Susan adds that courts do not look with favor upon noncompete agreements absent the showing of actual loss of profits to the business because the employee would be precluded from working in his or her profession. Enforcement of such an agreement mandates relocation or a career change. Tom and Mark state that it is the salespeople who develop a rapport with the customers. They worry that the salespeople, upon leaving, could influence customers to follow them to another store.

Should L&S require a non-compete agreement?