Non Compete Agreement Not Enforceable

February 25, 2022

Non-compete agreements are contracts that prohibit employees from working for competitors for a certain period of time after leaving their current employer. These agreements are common in industries where employees have access to confidential information or trade secrets. However, some non-compete agreements are not enforceable, and it’s important for employees and employers to understand when this is the case.

There are several reasons why a non-compete agreement may not be enforceable. One of the most common reasons is that the agreement is too broad in its geographical scope or duration. Courts will often strike down non-compete agreements that limit an employee’s ability to work in a wide geographic area or for an extended period of time. This is because such restrictions can be seen as an undue hardship for the employee and can limit their ability to find work.

Another reason why a non-compete agreement may not be enforceable is if it is not supported by consideration. Consideration is the legal term for the value that each party brings to a contract. In the case of a non-compete agreement, the consideration is often the promise of employment or continued employment. If an employer requires an employee to sign a non-compete agreement after they have already been hired, or if the employer does not provide any additional consideration for signing the agreement, it may not be enforceable.

Non-compete agreements may also be unenforceable if they are contrary to public policy. This can happen if the agreement is so restrictive that it prevents an employee from using their skills and knowledge in their chosen field, or if it prevents them from working at all. In some states, non-compete agreements are only enforceable if they protect a legitimate business interest, such as client relationships or trade secrets. If the non-compete agreement goes beyond what is necessary to protect the employer’s business interests, it may be considered against public policy.

If you are an employee who has signed a non-compete agreement that you believe is unenforceable, you may want to consult with an attorney. They can review the agreement and provide advice on whether it is likely to be upheld in court. If you are an employer who wants to create a non-compete agreement that will be enforceable, it’s important to consult with an attorney who can help you navigate the legal issues surrounding these contracts.

In conclusion, non-compete agreements are not always enforceable. Employers and employees need to be aware of their legal rights and obligations when it comes to these types of contracts. If you find yourself in a dispute over a non-compete agreement, it’s important to seek legal advice to determine your options and protect your interests.