Legal implications for requiring employees sign non-compete contracts depend on where they are enforced and created. In general, the courts consider several factors in determining whether such agreements are valid, including their scope, duration, and reasonableness. They will also look at any economic damage that could be caused by enforcement.
In addition to these considerations, courts often take into account the overall fairness of such an agreement; this includes examining if it’s likely to put an unreasonable burden on either party involved. In addition, these agreements may limit employee mobility and also impact public policy. Therefore, courts weigh private as well as public interests.
In the end, employers should ensure that all non-compete contracts they force their employees sign comply with applicable laws. If not, then there’s risk of finding themselves in breach of contract. It’s important therefore for organizations to assess each situation individually while consulting relevant legal experts prior to implementation in order minimize risk.