When a former employee starts calling your clients or working for a competitor, the damage compounds quickly. Tennessee law gives you tools to stop it, but your ability to act depends on whether your agreement was built to hold up in court.
What makes a non-compete agreement enforceable in Tennessee
Tennessee treats non-compete agreements or restrictive covenants as restraints on trade. Courts will only enforce them when they protect a legitimate business interest, are supported by valid consideration, and are reasonable in scope, duration, and geography.
Effective July 1, 2026, non-competes entered into, renewed, or amended on or after that date are void and unenforceable against employees earning less than $70,000 in annualized compensation. If your former employee signed an agreement after July 1, 2026, and falls below that threshold, you will need to rely on confidentiality or non-solicitation agreements instead.
What counts as a protectable business interest
Courts require you to identify something concrete worth protecting. Recognized protectable interests in Tennessee include trade secrets and confidential business information, substantial customer relationships, and specialized training your business provided. General industry skills an employee developed on the job are not protectable.
How courts evaluate scope, territory, and duration
The 2026 Tennessee law created a rebuttable presumption that restrictions of two years or less are reasonable for employees and independent contractors. Geographic scope, however, remains case-by-case. Courts look at where the employee actually worked and where your customer relationships exist.
The territory in your agreement should match the actual competitive threat, not a broader area than necessary.
What to do when a former employee violates the agreement
Document the violation first. Gather evidence of solicitation, competing activity, or misuse of confidential information. A cease-and-desist letter is often a strong first step. Acting quickly matters because courts weigh delay against employers seeking emergency relief.
How to get an emergency Temporary Restraining Order
Under Tennessee law, you may ask a court for a Temporary Restraining Order (TRO) to put a stop to the harmful conduct right away. To get one, you need to show three things: that you will suffer real harm that money alone cannot fix, that your case is strong enough to likely succeed, and that the hardship on your business outweighs the burden on the former employee.
A TRO can be granted within hours of filing and stays in place for up to 15 days while the court sets a formal hearing.
If a former employee is putting your client relationships at risk right now, talking to a business litigation attorney as soon as possible may be the most important step you take.