Do You Need a Non-Compete Lawyer?

When does employment contract law make non-compete agreements unenforceable?

The law can substantially vary from state to state but, generally, a non-compete may be unenforceable if the agreement is:

• Excessively severe or oppressive,
• Unclear or ambiguous,
• Overly broad, covering too large of a geographical area or for too long of a time period, or if it is
• Unnecessary to protect your former employer’s legitimate business interests.
• Additionally, you might also be protected from a non-compete if:
• You were fired,
• Your former employer selectively enforces non-competes,
• Enforcing the agreement would require you to relocate a great distance,
• Your new job does not place you in direct competition with your former employer, or if
• Your former employer acted improperly or unlawfully with regard to your employment, such as withholding wages, discriminating against you or retaliating against you.

What can I do if my former employer is trying to enforce an unfair non-compete provision?

One option may be to turn the tables on your former employer by seeking a declaratory judgment from the courts and forcing your employer to defend their non-compete. Furthermore, in some jurisdictions you may be able to sue for damages you incurred as a result of your former employer’s attempt to enforce an unenforceable non-competition provision.

What should I consider before signing an agreement?

Each employee’s case is unique, and there are a number of factors that impact whether you should sign a non-compete agreement:

• Can you support yourself with the imposed restrictions? Don’t unknowingly agree to give up your future livelihood for a job today.
• Preferably, only agree to sign an agreement that specifies competitors or other employers instead of an entire region.
• Try to narrow the agreement to a specific field or product and not just something overly broad such as ‘sales’ for example.
• Identify what commercially valuable information your employer is seeking to protect.
• Ask for a garden leave provision – under this provision you must provide advanced notice of your intent to leave your employer but if your employer ask you to leave, they will continue to pay you for a pre-determined period of time during which you are restricted from competing

Why should I act quickly?

When facing a lawsuit over a non-compete agreement, sometimes known as a restrictive covenant, you must act quickly because your former employer may seek to prevent you from working at your new job.

What’s the next step I should take?

There are exceptions and every claim is different but if you believe your former employer is unfairly attempting to enforce a non-competition provision call The Employment Law Group® law firm to schedule a consultation with us and, together, we’ll decide what your next move should be.