Protectable Business Interests for a Covenant Not to Compete
A few days ago I noted that Tennessee Covenants Not to Compete are only enforceable where the employer has a protectable business interest. A good overview of what makes an interest “protectable” can be found in Vantage Technology, LLC v. Cross, 17 S.W.3d 637, 644 (Tenn.Ct.App.1999). As outlined in Vantage, the facts have to be such that without the covenant, the employee would gain an unfair advantage in future competition with the employer. In making this determination, the court should consider:
(1) whether the employer provided the employee with specialized training;
(2) whether the employee is given access to trade or business secrets or other confidential information; and
(3) whether the employer's customers tend to associate the employer's business with the employee due to the employee's repeated contacts with the customers on behalf of the employer.
These considerations may operate individually or in tandem to give rise to a properly protectable business interest.