What are the implications of a non-compete agreement?
Non-Compete Agreement / Clauses This clause has broader implications than the others because it prevents you from leaving your employer to work for a company that they compete with.
How is a restricted area determined in a non-compete agreement?
Non-Competes usually describe a restricted area in which the employee cannot compete. Oftentimes this restricted area is determined based on a certain mile radius from employer headquarters or facilities, or by a list of towns or counties in which the employee is prohibited from competing.
Can a breach of non-compete be unenforceable?
Generally, overly broad non-competes will be unenforceable, while the narrower, upheld non-competes will only prevent the employee from soliciting or working with the former employer’s clients. Almost all of the successful cases included direct competition for clients and malicious action in behalf of the employee or new employer.
What are restrictive covenants and non-compete clauses?
1. What are post-termination restrictive covenants? Restrictive covenants and non-compete clauses (sometimes known as post-termination restrictions) are clauses within a contract of employment or a Settlement Agreementwhich prevent a leaving employee from taking clients or key employees from their former employer, or working for a competitor.
Non-Compete Agreement / Clauses This clause has broader implications than the others because it prevents you from leaving your employer to work for a company that they compete with.
Can a departing employee be sued for breach of non-compete?
From Company A’s perspective, a lawsuit against a departing employee, even if he/she breached their agreement, is a losing perspective. Nevertheless, this does not guarantee that an employer will never seek legal action against a departing employee for breach of a non-compete.
Is it possible to prove a non-compete is enforceable?
In general, it is very difficult to prove that a non-compete is enforceable. A majority of cases conclude that the non-compete was unenforceable. Generally, overly broad non-competes will be unenforceable, while the narrower, upheld non-competes will only prevent the employee from soliciting or working with the former employer’s clients.
What are liquidated damages in a non-compete agreement?
Liquidated damages are provided in a contract as an amount, or formula for calculating an amount, that a party will pay for breaching the contract. In this context, employers may include an amount that the employee must pay if they breach the non-compete agreement with their employer.