Non-Compete Agreements in Missouri: Legal Standards

The General Rule in Missouri

Missouri enforces non-compete agreements that meet a reasonableness standard. Missouri has a well-developed body of case law, and courts apply a multi-factor test that has been refined through decisions like Whelan Security Co. v. Kennebrew and Healthcare Services of the Ozarks v. Copeland.

Missouri's Enforceability Test

Missouri courts enforce a non-compete only when:

• The agreement is supported by valid consideration
• It is reasonably necessary to protect a legitimate employer interest
• The restrictions are reasonable in time and geography
• The agreement is not unduly burdensome on the employee
• The restrictions are not harmful to the public interest

Legitimate Business Interests

Missouri courts recognize several legitimate interests:

• Trade secrets and confidential information
• Customer contacts and relationships developed during employment
• Specialized training provided at the employer's expense

General knowledge and skills acquired during employment are not protectable interests. An employer cannot use a non-compete simply to prevent an employee from using skills that are common in the industry.

Reasonable Duration and Geography

• Duration: Missouri courts have upheld restrictions of one to two years. In Whelan Security, the court examined whether the time period aligned with the competitive threat. Longer durations may be accepted for senior roles with extensive trade secret access.
• Geography: Must relate to where the employee worked or had customer relationships. Missouri's position in the center of the country means employees often serve multi-state territories, and courts consider this when evaluating geographic scope.

The Independent Consideration Requirement

For new employees, the job itself provides consideration. For existing employees, Missouri courts have required independent consideration beyond continued at-will employment. This could include a raise, bonus, promotion, or access to new confidential information.

Red Flags

• No independent consideration for existing employees
• Duration exceeding two years without strong justification
• Geographic scope unrelated to the employee's actual territory
• Restrictions on general industry knowledge rather than specific competitive activities
• Applied to employees without customer contact or trade secret access

When to Consult a Lawyer

Consider consulting a Missouri employment attorney if you are being asked to sign a non-compete mid-employment without additional compensation, if you are planning to start a competing business, or if you have received an enforcement demand.

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.