Section 10 Examples of Time and Area Restrictions Upheld by Courts

• Library: Employer-Employee Law 2008

Missouri courts permit enforcement of a restrictive employment covenant that contains no geographic limitation—if the restriction is limited to a former employer’s customers. Silvers, Asher, Sher & McLaren, M.D.s Neurology, P.C. v. Batchu, 16 S.W.3d 340, 345 (Mo. App. W.D. 2000).

Missouri courts have even upheld an injunction preventing competition when there was no geographic limitation. In Systematic Business Services, Inc. v. Bratten, 162 S.W.3d 41, 51–52 (Mo. App. W.D. 2005), the court upheld a two-year restrictive employment covenant banning service or solicitation of customers with no geographic restriction but denied a two-year noncompete with no geographic limitation. In this case, the employee was still employed by his employer when he:

• started a competing business

• solicited his co-employees to leave with him

• solicited their help in stealing data; and

• serviced the employer’s customers

Id. Despite this, the court held that a general restriction against engaging in his profession was overly broad. Id.

Missouri courts have upheld and enforced restrictive employment covenants in a variety of circumstances involving many combinations of time and area restrictions:

• Kessler-Heasley Artificial Limb Co. v. Kenney, 90 S.W.3d 181 (Mo. App. S.D. 2002) (5 years; 50-mile radius of corporate office)

• Silvers, Asher, Sher & McLaren, M.D.s Neurology, P.C., 16 S.W.3d 340 (2 years; 75-mile restriction)

• Nat’l Starch & Chem. Corp. v. Newman, 577 S.W.2d 99 (Mo. App. W.D. 1978) (2 years; area where employee had solicited customers, which included 10 states)

• Long v....