Human Resources Certification Institute (HRCI) Practice Exam

Which of the following agreements may employers have the most legal trouble enforcing?

1. Nonsolicitation of current employees

2. Arbitration agreements

3. Employment contracts

4. Noncompete agreements

The correct answer is: Noncompete agreements

Noncompete agreements may cause employers the most legal trouble because they restrict employees from working for a competitor after leaving the company. These agreements are often seen as unfair and can limit an employee's job opportunities after leaving their current job. In contrast, nonsolicitation agreements only restrict employees from actively recruiting or soliciting other employees to leave the company. Arbitration agreements only dictate the method for resolving disputes, and employment contracts outline the terms and conditions of employment. Both of these agreements are generally more widely accepted and do not face as many legal challenges as noncompete agreements.