How hard is it to enforce a non compete?
Courts don’t want to enforce agreements that make it too difficult for people to work and make a living in the industries in which they have experience. It would be very difficult to get a court to enforce any non-compete agreement in that situation unless it was tailored to be quite narrowly restrictive.
Can a company enforce a non-compete agreement?
If there is a shortage of people in a particular specialty, or in a particular geographic area, then the employer cannot enforce a non-compete even if all the other requirements are met.
When to go to court over a non-compete clause?
Going to court over a non-compete clause is a last resort. If a court rules against you, you will owe your former employer any liquidated damages outlined in the clause. How does a non-compete clause impact my equity? In many cases, non-compete clauses impact your equity and stock options.
Can a non-compete clause be sued in California?
Laws about non-compete litigation vary significantly between states. Noncompete clauses are unenforceable in some states such as Oklahoma and North Dakota, whereas in California, for example, employers who require a non-compete clause can even be sued. Before signing, research the laws in your state. How enforceable is a non-compete clause?
How often should you review a non-compete agreement?
If you want employees to be bound by non-compete agreements, the best course of action is to have an attorney prepare them, and to have them reviewed at least once a year for any changes necessary. An unenforceable non-compete is worse than useless – it is dangerous to the employer who tries to enforce it.
Can you sign a non compete agreement with a former employer?
If your employer presents you with a non-compete agreement and you decide to sign the contract, you are promising not to compete against your employer once your employment ends. In addition to preventing you from signing an employment contract with a competitor of your former employer, non-compete clauses can prevent you from:
What happens if a non-compete agreement is found unenforceable?
The employee who is willing to fight will sue the former employer for tortious interference with that employment relationship, and if the non-compete is held to be unenforceable, they will win, costing the former employer not only attorneys fees and costs, but possibly thousands in damages in the form of lost wages and non-pecuniary damages.
If you want employees to be bound by non-compete agreements, the best course of action is to have an attorney prepare them, and to have them reviewed at least once a year for any changes necessary. An unenforceable non-compete is worse than useless – it is dangerous to the employer who tries to enforce it.
Going to court over a non-compete clause is a last resort. If a court rules against you, you will owe your former employer any liquidated damages outlined in the clause. How does a non-compete clause impact my equity? In many cases, non-compete clauses impact your equity and stock options.