Non-Compete Agreement

Reasonableness is one of the most important aspects of any Non-Compete Agreement because the courts will be weighing in on it. Achieving a balance between protecting someone's business and not burdening the non-competitor is essential. And this is something often neglected by companies that use the agreement. An overbroad scope is usually considered unfair to the non-competitor, especially regarding the duration of the agreement. Similarly, the geographic range is often taken into a court’s consideration of reasonableness.

Sometimes an employer will add a “consideration” provision in the Non-Compete Agreement. This means that it will pay a monetary or non-monetary incentive to the non-competitor for agreeing to the terms. However, in most cases, employers will not think to provide such compensations, though most of the time only a good employer can pull off requiring such an agreement without employees leaving left and right.

It is legal for an employer to ask current employees to sign a Non-Compete. This happens if certain circumstances occur that would lead the employer to want to protect the business. However, if an employee chooses not to sign it, it may be illegal for the employer to dismiss the employee. You may have to consult your state law for the specificities.

Firstly, the difficulty of getting out of a Non-Compete Agreement will vary from state to state. Some are more known to enforce these agreements than others. If you feel that your non-compete is too restrictive, you may be able to take the matter to court. Another approach is to ask to be released from the Non-Compete Agreement. Employers often do not track employee activities after they leave the company, save for perhaps select outstanding individuals. An employer might be inclined to release you from the agreement and if so, you will want to get the release in writing before starting a new job or business.

In some cases, the employer may not do anything at all. However, you may get sued and the court may issue an injunction that forbids you from competing in the same industry. Those who violate injunctions can be held in contempt and sent to prison. Since time is essential in these matters, a court will usually react quickly if there are merits to the employer's claim. You may be assessed damages if you are to lose the case.